Chipotle loses its sizzle. Stock plunges 15% |
| CNNMoney - Oct 19, 2012 |
It looks like David Einhorn's latest prediction may be coming true.
Shares of Chipotle Mexican Grill (CMG), which Einhorn recently recommended shorting, got slammed after the casual restaurant chain reported earnings that fell short of forecasts. And, although revenue was roughly in line with estimates, investors were disappointed.
Chipotle's stock sank more than 10% after-hours Thursday. On Friday, shares fell more than 15% before gaining back some ground.
I fortuitously bumped into Einhorn on my way out of the Time Warner Center (where CNNMoney is housed) Thursday night. Einhorn, the founder of hedge fund Greenlight Capital, said he wasn't surprised by Chipotle's earnings but hadn't had time to dig into them yet.
Earlier this month, Einhorn told investors to bet against Chipotle's stock. Einhorn, known for his early calls on the looming blow up of Lehman Brothers, said Chipotle's torrid growth pace wasn't sustainable, particularly with Yum! Brands' (YUM) Taco Bell making a push into upscale burritos.
Read Full Article from CNNMoney
- Posted: 2012-10-20 23:49:28
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