Chipotle Mexican Grill Inc. stock fell Tuesday after hedge fund manager David Einhorn recommended selling the stock short during a presentation in which he also panned Green Mountain Coffee Roasters Inc.
Einhorn, head of Greenlight Capital Inc., said at the Value Investing Congress in New York that Chipotle has too high of a valuation and will face challenges from Yum Brands Inc.’s Taco Bell chain. “The biggest challenge comes from a resurgent Taco Bell,” Einhorn said. Chipotle’s ability to raise prices is limited given rising food costs and worker health care expenses, he said.
Einhorn also criticized Green Mountain and recommended selling the company short. The coffee brewer’s capital expenditures remain inexplicable and single-serve coffee price wars are just getting started, he said.The Associated Press