Taco Bell and Chipotle Go Head-to-Head

Investors in Chipotle probably weren't excited today, when the company came under fire at the Value Investing Congress this morning.

The renowned David Einhorn, famous for shorting stocks, anounced that he thought Chipotle is a "short." Investors watched as shares immediately took a nosedive to finish the day down 4%. Einhorn believes the company faces significant headwinds from competitors such as Yum! Brands (NYSE: YUM  ) and its revamped Taco Bell franchise. 

While Einhorn was optimistic on Taco Bell's prospects, he was bearish on the company as a whole, citing difficulties in the Pizza Hut and KFC businesses. For a more in-depth look at these companies, watch the following video, in which Fool.com analysts Blake Bos and Isaac Pino discuss the recent announcements.

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Blake Bos and Isaac Pino have no positions in the stocks mentioned above. The Motley Fool owns shares of Chipotle Mexican Grill. Motley Fool newsletter services recommend Chipotle Mexican Grill. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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