In this file:

 

         Chipotle: Bill Ackman Ready To Checkout

... Ackman now has a larger stronghold on the Chipotle board, getting four board seats last year...

 

         One Sign Chipotle Isnít in Damage-Control Mode Anymore

The burrito chain has been raising prices, a far cry from the days when it gave away free food to encourage customers to return.

 

         Chipotle Is No Amazon, Tesla, Apple or Google and That's Why You Must Dump the Stock

... all they do is make burritos...

 

 

 

Chipotle: Bill Ackman Ready To Checkout

About: Chipotle Mexican (CMG)

 

Activist Stocks

via Seeking Alpha - Apr.19.17

 

Summary

 

         Will CMG be the next VRX for Bill Ackman?

 

         Ackmanís Pershing Square hedge fund has already positioned itself to dump its CMG stake.

 

         However, CMG is finally showing signs of life.

 

Chipotle (NYSE:CMG) is now one of the major focuses of activist investor Bill Ackman after Pershing Square dumped its Valeant Pharmaceuticals (NYSE:VRX) stake. Ackman showed he has the patience to wait out a turnaround, as exhibited with VRX.

 

However, Ackman is cleaning up his portfolio. He's also positioned himself, per an SEC filing in March, to be able to sell his near 3 million stake from time to time without having to file multiple registration statements.

 

Yet, CMG has started to regain strength. The stock is up 25% in 2017. This could give Ackman the encouragement to ride this out. Pershing's average cost is right around $415 a share.

 

The Good

 

Chipotle has made moves to improve the corporate governance, but we need to see more along the lines of operations. The company got rid of its co-CEO role, and Ackman now has a larger stronghold on the Chipotle board, getting four board seats last year.

 

One of the big underrated catalysts looks to be a price raise. CMG recently upped its prices about 5% across 20% of its stores. Assuming shoppers continue to visit stores, this should boost earnings. Getting more customers to come into its stores hasn't been a good enough thesis. Thus, the recent price hike is the first we've seen since late 2015 and the first hike since the food safety scares.

 

The Longer Play ...

 

more

https://seekingalpha.com/article/4063564-chipotle-bill-ackman-ready-checkout

 

 

One Sign Chipotle Isnít in Damage-Control Mode Anymore

The burrito chain has been raising prices, a far cry from the days when it gave away free food to encourage customers to return.

 

By Avi Salzman, Barron's

April 19, 2017

 

Chipotle has been quietly raising prices in several cities in recent weeks -- its first large-scale increase in about two years. Itís a sign that the company is more confident about its ability to win back customers, but itís not likely to move the sales needle much on its own.

 

Chipotle boosted prices at 440 restaurants, or about 19% of its restaurant base, on April 11, according to Maxim Group analyst Stephen Anderson. Analysts expect that price increases could be coming to more of its restaurants soon.

 

The hikes were not huge -- about 5% at many locations -- but they are significant. Chipotle is no longer in damage-control mode, doing everything possible to woo back customers who were turned off by its food-safety problems. They briefly were giving away free burritos last year.

 

The increases are necessary to deal with higher costs. Chipotleís labor and food costs have risen in the past couple of years, even as the company has held the line on prices. In February Chipotle said its labor costs could rise 4% to 5% this year as more states pass laws boosting the minimum wage.

 

It remains to be seen if customers will be turned off by the price hikes. Itís hard to imagine that a customer will walk away because a chicken burrito now costs $6.85 rather than $6.50, which is now the price in Columbus, Ohio. And who will forgo an order of guacamole just because itís now $2.15, up from $2.05 at stores in Arlington, Va.?

 

That said, investors shouldnít expect the price hikes to drastically change Chiptoleís fortunes...

 

more

http://www.barrons.com/articles/one-sign-chipotle-isnt-in-damage-control-mode-anymore-1492636031

 

 

Chipotle Is No Amazon, Tesla, Apple or Google and That's Why You Must Dump the Stock

 

Lindsay Rittenhouse, TheStreet

Apr 19, 2017

 

Chipotle† (CMG) shares hit a 52-week high of $471.57 a share on Monday, but it's a move that could be overdone.

 

"Despite all the challenges that Chipotle has endured over the past 18 months, the company's valuation remains lofty," BTIG analysts Peter Saleh and Ben Parente said in a research note on Wednesday.

 

Saleh and Parente said shares are currently trading at 39 times their 2018 earnings per share estimate of $12.09.

 

"We believe the current multiple is reflective of investor expectations for material improvement in same-store sales and unit economics in the coming year, which we believe remains too uncertain at this point," the BTIG analysts said.

 

Saleh and Parente said Chipotle's price to earnings multiple could fall to the low 30s, "given less obvious upside to sales and restaurant margins."

 

Analysts at StandPoint Research were more blunt.

 

"Chipotle is being treated like it's an "Amazon (AMZN) , Tesla (TSLA) , Apple (AAPL) or Google (GOOGL) , when in fact all they do is make burritos," wrote Standpoint Research analyst Ronnie Moas in a new Wednesday. Moas has a sell rating and $420 price target on Chipotle.

 

The burrito king is set to release its first-quarter results next Tuesday, and analysts...

 

more

https://www.thestreet.com/story/14092867/1/if-chipotle-s-stock-crashes-shortly-you-can-blame-everything-seen-here.html