I have NEVER gone to a chipotle and walked away thinking I got screwed. If they put too little I ask for more and they do it, except the protein part.
Playing devil’s advocate, standardization isn’t bad for consistent portion sizes. However I love the fact that it is different because sometimes I don’t want as much rice or more rice and want the burrito bowl customized.
Almost always I get two meals out of one bowl.
This sucks. When I was looking at its earnings coming up I thought for sure it would hit $60 EOW. It kinda did, technically $59.99, but it was AH.
They do a stock split - bullish. Stock goes down.
They are doing share repurchase - bullish. Stock goes down.
Then the hit piece on portion sizes. How is this a sufficient study? They went to 7 locations in the same damn city. Yes it was a hit piece. Don’t even need to read it (I still did) to know that. There are so many factors that impact this and it felt like stick espionage.
Here is where I went wrong in my thesis. They are driving down the price because earnings are going to be great. And they were. It’s funny how media outlets can take one cautionary remark and use it to explain why the stock is still dropping.
I heavily debated $55c and then $52c day of earnings and passed. Something still seems off, and I usually don’t grab the falling knife by the handle. So I stayed out.
Your play seems to be based on a good earnings and recovery from the BS portion size article and other bullish things the stock is doing. Not wrong, but it just shows how much the market can remain somewhat irrational.
The hit piece could actually have been spun as bullish. Holy shit investors chipotle is selling the same burrito bowl with 1/3 less product in it! It’s not different than company layoffs driving a stock price higher.
WHEN this recovers it’ll pay great on calls. I just don’t know when that will happen.
Sorry for your loss.