Chipotle

[hog.goblin]

Anybody have the guts to short Chipotle?

P/E still over 30 and illness reports occurring almost quarterly.  We have a new one in Fayetteville and I sure don't have the guts to go.

[BigBrandonAllenFan]

[hawgrunner]

Anybody have the guts to short Chipotle?

P/E still over 30 and illness reports occurring almost quarterly.  We have a new one in Fayetteville and I sure don't have the guts to go.

Was their food that good to begin with?

[hog.goblin]

Was their food that good to begin with?

Never eaten there, but supposedly truly fresh fast food (Tex mex style).  Apparently fresh-mass produced means increased probablity of E. Coli.

Perhaps preservatives are a good thing.

[McKdaddy]

There's 1 next to my office that I hit often when I don't have much time between client appointments for a sit-down lunch.  The wife can't believe I still hit it up due to the ecoli concerns, but its chicken, steak, and guac are fresher than qdoba, which sits on the opposite side of my building.

[je100]

http://www.bloomberg.com/features/2015-chipotle-food-safety-crisis/

At Chipotle, three different pathogens caused the five known outbreaks. That wasn't inevitable or coincidental. "There's a problem within the company," says Michael Doyle, the director of the center for food safety at the University of Georgia.

Seems like there's more of a problem than just some random E Coli outbreak that just found its way into their process.  It sounds like systemic problem that they will have to get a handle on.  A year or two may allow for a buying opportunity, but not now.  At least not for me.  My guess is we'll watch the stock continue to fall for a while.

I'm not a short guy, so I'll just watch.

[je100]

There still may be time to short, Goblin.

http://www.zerohedge.com/news/2016-01-06/chipotle-december-sales-collapse-reports-receipt-fda-subpoena

[hog.goblin]

Didn't have the balls to do it.  Down nearly 300 YTD not sure a lot of sellers left.  So since I'm not selling it short, that guarantees the rest of you should and you'll make a killing.

[je100]

Didn't have the balls to do it.  Down nearly 300 YTD not sure a lot of sellers left.  So since I'm not selling it short, that guarantees the rest of you should and you'll make a killing.

Thanks for taking one for the team.  My Roth really needed this.

Just kidding.  My preferred risk is to catch the falling knife and go long.  While it never works, it somehow seems less risky. 

None of this really matters for me though.  I bought Citibank for about a 1.50 (pre 1:10 split) during the Great Recession and couldn't hold on to it.  Ended up selling quickly for a marginal gain.  The moral for me is, no matter what good deal I buy, I sabotage the deal by selling early.

[McKdaddy]

On a related note I finally slowed down my Chipotle visits when the e coli scare was announced in OK 2-3 weeks ago . . . but it's so darn convenient sitting next door to my office.

[hog.goblin]

On a related note I finally slowed down my Chipotle visits when the e coli scare was announced in OK 2-3 weeks ago . . . but it's so darn convenient sitting next door to my office.

It won't be so convenient when you are praying to the porcelain god!

[McKdaddy]

It won't be so convenient when you are praying to the porcelain god!

Yes, so true, ha.

[hog.goblin]

Local stores in NWA are closing until 02/08

Haven't heard any illnesses, I think it's part of a national safety restructuring project

[McKdaddy]

Local stores in NWA are closing until 02/08

Haven't heard any illnesses, I think it's part of a national safety restructuring project

Yes, nationally stores are closing for 1 day on Feb 8th

[hog.goblin]

Yes, nationally stores are closing for 1 day on Feb 8th

Thanks for the clarification, my wife relied on a poorly worded headline.  Taking one day nationwide seems like an intelligent move.

[razorhog52]

Probably time to buy. Just like VW after all their issues. They are up 20% since then.

[Karma]

I'm thinking of buying a little. I have noticed on my (frequent) visits that the traffic is way down.  But I think it recovers.

[HawgWild]

Good luck. I saw where they'd posted a sign on their door yesterday during lunch to say they were closed for some training on food safety, or something like that. The news segment also mentioned that they were giving out free coupons for a burrito if you texted in by 6:00 pm. I asked my wife if she wanted to get a coupon and she said "No thanks." It may take awhile to win back customers.

[Karma]

Good luck. I saw where they'd posted a sign on their door yesterday during lunch to say they were closed for some training on food safety, or something like that. The news segment also mentioned that they were giving out free coupons for a burrito if you texted in by 6:00 pm. I asked my wife if she wanted to get a coupon and she said "No thanks." It may take awhile to win back customers.

I figure that 1 bad burrito out of 100 is worth the 99 great ones.

[McKdaddy]

I figure that 1 bad burrito out of 100 is worth the 99 great ones.

Agreed, ha. 

[hog.goblin]

It always is until you get that one.

I haven't had a drink of vodka since 1991...