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It's fun powerhouse Jeffrey -- -- made a call this week too short one particular stock.
He recommends that investors bet against Chipotle Mexican Grill but the stock is up nearly 25%.
So far this year.
Those are very too confusing pieces and -- -- so let's help you decide whether to bite into to -- -- her ratings rumbled joining us now.
We've got our bull who has an outperform rating he's -- at -- senior equity analyst with what bush.
And our bear with us celebrating is -- and of S&P capital IQ welcome to you both okay so now -- black joins the pity party here.
He and of course -- Einhorn.
Our two guys who have made some pretty strong calls in the passive Simpsons here are buried here let's get to your opinion -- why you agree with these gentlemen if -- different.
Data points on CMG or what is it that you think is something negative about chipotle.
Well -- -- in a -- -- -- it's a little bit short term but mostly long term.
-- short term is that right now in the Korean foreign -- Track now put traffic and restaurant indices down across the board is very weak.
And therefore I think that you know look at -- pop -- to.
We just know -- long term historic same store sales they have to raise prices in their thinking this -- -- -- It's difficult for them to to raise prices.
The people compete in them at a lower price points alone to price points and people Florida higher price point the casual dining -- -- lonely so I think number one it's.
It's -- -- environment I think too but to have typical recent crisis.
And second more longer term we think that it's a conclude is not very popular outside the US so even though that's public -- ball.
Equal opportunity outside the US has become the he may -- in England Germany France we've seen the -- opportunity outside is somewhat limited him.
For him forward I didn't see too many Mexican restaurants in Paris but let me disagree with one point here is the foot traffic and nick you get to weigh in on this what is your problem on the ground research show because we had.
Jim Rose one of our team members go across the street again it's Manhattan's already got millions of people running around but yeah this was -- lunch line today.
It went on and on so many people wanting the -- -- whatever they get there but what do you see out there as far as boots on the ground.
You know if there was that you -- workers which is there -- number one.
Competitive I was in a very big line I don't know -- so my point is that there's -- competition.
42 -- -- you know from the day started and they've completely obliterated this day and their competition so.
And and when when it comes to foot traffic being down the restaurant industry.
The quick casual category led by triple it hasn't necessarily seen much of about the slowdown at all I expect that the category headwinds continue.
-- -- with category as a poses as one my favorites and so which probably going forward.
You know what you want with a trough and so -- because the reason why the stock went up so much is because the book the -- case was completely obliterated.
Day to day -- -- that did not post negative traffic north they have other traffic north and we're only going to accelerate going forward.
Okay what -- -- -- -- The short stick gets squeezed -- -- it look there is no denying that they had a very rough time when it came to higher commodity prices during the drought a year year and a half ago.
But now you see that they have found their -- again does not make that dangerous for the shorts are people betting against the same.
Well I think foot traffic has had nearly as to increase looked -- tactical way.
But that predominate because they have not raise the prices.
Number two I did read that note of this -- -- continue to -- the past capsule.
But would see a little bit more no competition.
People are trying to imitate so.
Can competition has been always been -- I think maybe look at the catching up.
But I think again to -- of -- achieve their historic they had to and continued to see it looks like a lot stronger foot traffic plus they have to race a crisis.
I wanna give -- the last word because he's our -- you as a bear got to start -- you like they're catering business and if you say that's a real opportunity.
Absolutely our checks indicate that -- -- transactions -- we -- Colorado average -- about 300 dollars.
That's gonna have and I come -- 3% to -- sales growth.
-- panacea because their -- that out nationwide -- end of August that's gonna have.
Be guessing probably guess next -- -- -- expectations.
And -- the pricing there aren't they pressing at the end this here and stayed on this because console sales are going and gone either way it's a win win.
And so -- That's neither neither scenario is really in my models I don't think there's an expectation that -- this year that gets pushed back to January.
Because inflation money -- and as is actually below expectations so there -- thirteen numbers are gonna go up regardless it's only fourteen numbers -- going to be above expectations regarding.
Stock is a 368 -- price target is 420.
-- price target to seventy.
Or we'll put this up on our website so you can see it certainly our FaceBook dot com slash.
Countdown -- claim and we will love be watching all of that -- thank you so much except yet of what bush securities and -- -- up S&P capital IQ.
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