Chipotle Mexican Grill, Inc. (CMG) & Green Mountain Coffee Roasters Inc. (GMCR): Einhorn’s Old Shorts Might Be Buys

Bonus: In addition to the above two stocks, Einhorn also has been bearish on St. Joe Company in the past. The stock is one of the top picks of Fairholme Capital’s Bruce Berkowitz. The company is into real estate and has significant exposure towards Florida. Although Einhorn’s short thesis made a lot of sense when the housing market was going down, things seems to be turning the corner for St. Joe recently with the housing recovery gaining traction and land prices firming up. We are still in the early phases of a housing recovery and it doesn’t make sense to be short this stock at these times.

To sum up, Chipotle’s increased marketing spending and roll out of catering services is likely to drive its Same-Store-Sales growth in the near future. Moreover, the competitive threat from Taco Bell is overblown as Chipotle Mexican Grill, Inc. (NYSE:CMG) offers organic and healthy fast food, while Taco Bell simply caters to the fast food segment. GMCR’s recent results prove that it can maintain market share and continue its growth despite the recent K-cup expiry. In addition to these two stocks one can also consider St. Joe Company as a potential bet on a recovery in land prices.

Ash Sharma has no position in any stocks mentioned. The Motley Fool recommends Chipotle Mexican Grill and Green Mountain Coffee Roasters. The Motley Fool owns shares of Chipotle Mexican Grill.