Double Play: Chipotle
On Monday, we swore to you that the Chipotle IPO was going to be hot: "...One, Chipotle's food rocks -- we urge you to spend an hour there; you won't want to leave. Two, Chipotle priced its food perfectly -- for less than $10, you get a mean burrito and a Corona. Three, there is indeed a market for Chipotle. As it stands, it's biggest rival is Wendy's (WEN) Baja Grill. Based on the way investors are (mis) treating Wendy's, it's as clear as day: Chipotle's going to use Baja to mop the floor. Chipotle is profitable and we are confident Chipotle will zoom to the $30-$35 range within its first 48 hours of trading. ..."And picante hot it was.
The fast-casual Mexican food chain raised $170M dollars today in order to pay off some debt, cash out insiders (Chipotle opened in 1993), and raise capital for future growth & expansion.
The best news of the day?
The company plans to expand into Boston and Philadelphia late this year.
Just think of all those Harvardites munching down $8 burrittos.
We have a $55 price target on the stock -- over the next few weeks, the bears will come out to destroy this stock, probably citing high multiple mumbo-jumbo and the like.
$10,000 says they've never tried the food.
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