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
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Fool contributor Dave Mock doesn't own shares of companies mentioned here. Whole Foods Market is a Stock Advisor choice. Chipotle is a Rule Breakers pick. Chipotle and Buffalo Wild Wings are Motley Fool Hidden Gems recommendations. The Fool owns shares of Chipotle and Buffalo Wild Wings. The Fool's disclosure policy usually goes for the steak burrito with extra salsa.