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CMG Chipotle Mexican Grill, Inc. +5.6%
Initiated 10/17/11 $318.22 - Target 3/30/12 $336.00
Closed $337.49 10/24/11 10:35 AM
Today $392.13
Made 6.1% Consider this Stock
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David Sachdev
Washington, DC
User since Dec 2009
Covers MCP SINA GLUU SODA BAC AAPL TIBX and 3 other stocks - Go to Blog
Consider this Analyst
so we email you when they make picks
Hey Burrito, meet Bulgogi

Okay...let's try this one more time.  Correct Stock.  Check!  Correct price.  Check!  Correct timeframe.  Check!  Obviously, I am too busy today to really be writing coverages.

Long CMG into earings....long time horizon because I can see a market pullback in the next month or so.  336 price target conservative because of prior area of resistance.

Let's take this ride again!  This time we are right before CMG earnings, and before a conference call where y0u can expect some chatter on their new Asian themed restaurant.

My thought is that this is the last day to get in before people start focusing on earnings.

Rehashing my justification from my prior coverage

This may surprise you, but there are many cities that don't have asian food.  And then there are cities that have the lone Chineese takeout place that is run by the lone asian family in the city. 

Well, if Chipotle's latest experiement works then that will soon change.  I'm sure that their new restaurant will spread like wildfire in places - especially out of the big cities.

Check out the details on the link from DCist.  They may know food, but apparently they don't know much about web security...if you can call protecting your web directory from world access security:

http://dcist.com/2011/09/yes_asian-inspired_dishes_can_have.php

Conservative timeframe for sure here...even though CMG looks like it has good support just over 300, so I think that the downside is limited.

 

 
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What People Are Saying...
Ginger Gal agreed at 10/18/11 12:31 PM Agree
Got to try out the new place in DC. Believe in CMG as well as like their approach of using organic meat in their products!
Wesley To said at 10/18/11 1:14 PM
You tried it first hand and enjoyed the food? Experience was positive? Was there a buzz about the Asian CMG?
David Sachdev said at 10/18/11 2:35 PM
I have not yet...and I really have no excuse since it is probably less then 2 miles from my house...
David Sachdev said at 10/21/11 9:58 AM
Interesting comment on ShopHouse from the conference call. It matches with comments I have seen on yelp, and what people have reported to me on twitter...that in general it is too spicy. I will probably try for myself in the next few days...but I don't know if I know the phrase "too spicy"

"Some customers have commented that it's a bit too spicy, which is exactly what I heard when I opened the very first Chipotle 18 years ago. What I love is that these customers tell me that it might be too spicy, while they devour every bite of their meal. "

http://seekingalpha.com/article/301039-chipotle-mexican-grill-s-ceo-discuss...%2BMexican%2BGrill%2B%28CMG%29
Mike Barkett said at 10/21/11 11:16 AM
I think I might have to register burritotrader.com and redirect the site to that domain on CMG earnings dates. :)
David Sachdev said at 10/21/11 11:40 AM
https://www.google.com/search?q=burrito+with+face&oe=utf-8&rls=org.mozilla:en-US:unofficial&client=firefox-a&um=1&ie=UTF-8&hl=en&tbm=isch&source=og&sa=N&tab=wi&biw=1204&bih=579
Josh Warner-Burke said at 10/21/11 12:34 PM
Thanks for pasting the conference call link and pointing out the spicy thing. Spicy is good!
David Sachdev said at 10/24/11 10:36 AM
RT Close: 338
David Sachdev said at 10/24/11 11:35 AM
I'm not done with CMG just yet - but I may wait for a pullback. I have feedback on ShopHouse for my next coverage!
David Sachdev said at 11/10/11 2:12 PM
Sold Dec CMG 300/280 Put Spread for a credit of 3.05/contract
CMG $392.13 -2.37 (-0.6%)
 
 
CMG: Hedging Against the Crowd
Opened 346.50 1/4/12
Target 311.00 by 2/28/12
Today 392.13
Larry Leviton from Chicago

CMG: Ice Cream Dream
Opened 303.45 11/23/11
Target 340.00 by 12/31/11
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CMG: Asian Explosion!
Opened 331.47 11/11/11
Target 338.00 by 3/30/12
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Target 300.00 by 12/16/11
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