Sick of Chipotle yet?


Chipotle once again makes news for making consumers sick, and the fast casual concept might just kill your portfolio as well. The all corporate store chain is making headlines for making just shy of 700 customers sick last month in Ohio. Is this a case of getting bad meats from suppliers? If you are a $CMG investor, then you would hope so. Unfortunately the true source of the outbreak comes from mishandled meat. The actual bacteria is “Clostridium perfringens,” most commonly found when meat is left out, and was not kept hot enough or cold enough.

The 647 people who self-reported went to a Chipotle in Powell, OH between 7/26 and 7/30. Looking at this, you can take away a few things. One, Chipotle leaves out meat without proper handling. Two, food handling policies and procedures are coming down from corporate, and corporate can’t even blame a franchisee, because they don’t have any. Third, this type of an outbreak over a multi-day span isn’t the result of one bad batch, it is a result of a systemic approach from staff on the ground who have supposedly been properly vetted and trained not only by local health authorities, but who have gone through internal hiring and screening.

Chipotle will make your portfolio sick too

With such a systemic problem, let’s see how $CMG is doing in the market. Performance of the stock for the year shows a 65.71% growth, and YTD growth stands at 78.44%. Earnings per share are down quarter over quarter, showing a 27.6% reduction.

Analysts can’t agree on lunch, let alone a price target for Chipotle, with targets ranging from $330 to $600. If we run the numbers ourselves, a 5 YR EBITDA Discounted Cash Flow exit has us at a $502.05 price target, and it only gets worse from there. P/E multiples when compared to peers in the space ($MCD, $YUM, $QSR, $DPZ, $SHAK, $DRI, and $ARKR) shows a price target of $288.31, a whopping 44% downside.

No free guac, and no dividend

It’s not unlikely that Chipotle would hit the sub-$250 mark, with the 52-week high and low being $247.51 and $530.68, respectively. For now, stay away from the tainted burritos and the tainted stock, because you pay extra for guac, and don’t even get a dividend.

January 2, 2021 Update: We have just announced our BEST STOCK NEWSLETTER of 2020 AWARD!

CLICK HERE to find out which stock newsletter was up 78% in 2020 (and whose 2019 picks are now up 113%).

*** Our Award for BEST STOCK NEWSLETTER of 2020 ALERT ***

Updated January 2, 2021

At WallStreetSurvivor, we subscribe to dozens stock recommendation and advisory newsletters. There is ONE newsletter that is constantly outperforming all of the others--The Motley Fool Stock Advisor.

Five of their 2020 stock picks have doubled and the average return of all 24 of their stock picks for 2020 is up 78%!

We have been tracking ALL of the Motley Fool stock picks since January 2016. That's 5 years and 120 stock picks. As of Friday, January 1, 2021 the Motley Fool's January stock pick (TSLA) is up 720%, their March pick (ZM) is up 172%, their April pick of SHOP is up 226% and their June pick CRWD is up 120%; and another two have more than doubled. In addition, 10 of their 2019, 12 of their 2018, 11 of their 2017, 15 of their 2016. Most impressively, over the last 5 years that we have been tracking every recommendation, their average stock pick is up 209%--tht means over the last 5 years their stock picks, on average, have TRIPLED!

Now no one can guarantee that their next picks will be as strong, but our 5 years of experience has been super-profitable. The important thing about the Fool stock picks is you have to buy them the day they are recommended because they usually pop 5-10% in the first 72 hours after the release their recommendation. You sure don’t want to risk missing out on their next pick.

Normally the Fool service is priced at $199 per year but they are currently offering a NEW SUBSCRIBER DISCOUNT that allows you to get theiir next 24 stock picks for just $99/year. HERE is the LINK to visit their New Subscriber Discount page.

CLICK HERE to get access to all The Motley Fool’s Stock Picks and their next 12 months of picks for just $99 per Year! 



Robinhood was the first brokerage site to NOT charge commissions when they opened in 2013. They just past 10,000,000 accounts and to celebrate they are offering up to $1,000 in free stock when you open a new account.

Here’s the details: You must click on a special promo link to open your new Robinhood account. Then when you fund your account with at least $10, you will receive one stock valued between $5 and $500. Then, you will get a link to share with your friends. Every time one of your friends opens an account, you will receive another free stock valued between $5 and $500. Click here to learn more about this Special Robinhood offer.

Claim your free stock NOW (before it’s too late)

Comments are closed.