The turmoil in the markets makes it too easy to justify selling any stock these days. Yet, while panic never helps investors, it's still a good idea to play devil's advocate with investments.
Consider Chipotle Mexican Grill
Here at the Fool, we like to consider both the good and the bad sides of an investment, so I'm highlighting three of the main bearish arguments on Chipotle. Be sure to read the bullish side as well, and then weigh in with your own comments below or rate Chipotle in CAPS.
1. Questioning its expansion
Although Chipotle is beefing up its store count next year, some investors were disappointed with the forecast Chipotle offered for 2010 in its latest earnings report and question the sustainability of its growth. Some of its new store openings are expected to be a smaller-format store, which typically draws in fewer customers and could result in slower sales growth.
2. Premium shares
Compared with other restaurant chains like Burger King
3. Underlying weak comps
Chipotle may have recently bucked the trend by reporting increased same-store sales, something also achieved by Panera
To see details of what CAPS members are saying now about Chipotle, just click on over to Motley Fool CAPS and have a look -- or add your own thoughts directly to this story in the comments box below.