Fool Video: Buy, Sell, or Hold Chipotle?

By Mac Greer | More Articles
August 15, 2007 | Comments (8)

Shares of Chipotle Mexican Grill (NYSE: CMG ) (NYSE: CMG-B ) are up nearly five times in value since the burrito business went public 19 months ago. Chipotle's P/E is now almost double that of Starbucks (Nasdaq: SBUX ) and more than double the P/E of McDonald's (NYSE: MCD ) and Taco Bell parent company Yum! (NYSE: YUM ) . Will shares go even higher or will the bears get the last laugh? In this installment of "Fool Video," I ask Motley Fool senior analyst Seth Jayson.

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Seth Jayson owns shares of Yum! and Chipotle. Mac Greer doesn't. Neither Seth nor Mac owns any of the other stocks discussed. Starbucks is a Motley Fool Stock Advisor recommendation. The Fool has a disclosure policy.

Read/Post Comments (8) | Recommend This Article (23)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.

Report this Comment On August 15, 2007, at 11:40 AM, Adizrael wrote:

I just wanted to know how Chipotle plans on keep up with the increasing demand for fresh farm grown meat.
Report this Comment On August 15, 2007, at 2:12 PM, 42theflush wrote:

I, like Seth, hope the bears have their day or two. At such time I plan to place my order... with sour cream, guacamole, and extra corn salsa!
Report this Comment On August 15, 2007, at 2:25 PM, TMFSkiii wrote:

I think Seth did tame the bear. But, I'm a bigger believer in rival Baja Fresh. Although now a private company after previous owner Wendy's lost millions and sold, their food and approaches like using no freezers or microwaves is better.
Report this Comment On August 15, 2007, at 4:49 PM, kayakmastr wrote:

Seth is right on target!
Report this Comment On August 15, 2007, at 11:27 PM, TMFMac wrote:

Smappy,
Those are all fair questions. For some reason, the Bear chooses to keep the questions in his mouth. (Who am I to judge?). We thought the ballons would add to the festive atmosphere. But please note, the ballons are not tied to the bear. (despite appearances, the bear isn't that tame)
And while I'd like to "blame" the entire idea on a bad bet, I can't. In reality, I'm quite bullish on Tame The Bear and hope that a) it will become one of our more enduring franchises or b) that we'll at least be able to squeeze one more segment out of it before the ballons deflate.
Please let me know if you have any suggestions for future segments. Thanks for watching.
Mac Greer
The Motley Fool
Report this Comment On August 17, 2007, at 1:43 AM, dukeofwsu wrote:

Well done! Smack that bear back up above triple digits.
Report this Comment On August 20, 2007, at 8:22 PM, LeanieBean wrote:

So if you are doing "Tame the Bear"...will there also be "Ride the Bull"? Giddy-up!
Anywhoo...Seth rightly tamed that Bear. By his wisdom though, towards the end of the segment I then wanted the Bear "maul Chipotle" for perhaps a more decent entry point...so wait, what was the goal of him taming the bear again? ;o)
Report this Comment On August 21, 2007, at 6:00 PM, AbideN wrote:

Yes! Well done!

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