One Chipotle Mexican Grill, Inc. (CMG) Analysis You Should Actually Pay Attention To

A couple more comparables

Investors may want to take a look at competitors if they are spooked by the volatility in Chipotle Mexican Grill, Inc. (NYSE:CMG). Whole Foods Market, Inc. (NASDAQ:WFM) is a well-known natural and organic food retailer.  Whole Foods Market, Inc. (NASDAQ:WFM) has a P/E ratio of 32.81, with an EPS of $2.60, and a low dividend yield of .90%. Click here to read a more in-depth analysis of Whole Foods. Another option is PepsiCo, Inc. (NYSE:PEP). PepsiCo, Inc. (NYSE:PEP) has a more attractive dividend yield of 2.69%, a P/E ratio of 20.19, with an EPS of $3.96.  However, the Company’s shares are trading near multi-year highs of around $80, and this price level may provide resistance to any further move up.

What should you do?

Chipotle Mexican Grill, Inc. (NYSE:CMG) continues to grow in both revenue and number of restaurants.  Any investor who follows Einhorn and Gundlach by betting against the Company should be warned of the significant risk of a short squeeze in the stock, since it is so heavily sold by the market.  Any positive news for the Company has a tendency to send the stock soaring.  If investors are confident in the continued growth and a rise of the stock to previous highs, Chipotle may actually represent a good long play.  Only time will tell whether there is such a thing as a gourmet burrito.

Disclosure: none