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Shorting Chipotle

BEARISH by u/Plneaqqle | Jun 07, 2026 | 1↑ 0 comments | 30 views | VIEW ON REDDIT
$CMG
$CMG CHIPOTLE MEXICAN GRILL, INC. CONSUMER CYCLICAL EQUITY SIMULATION
$36.03
-0.93 (-2.52%)
LAST PRICE ยท 15 MIN DELAY
DAY CHG -2.52%
5D CHG -3.95%
30D CHG +11.89%
AI SUMMARY โ€” Author believes Chipotle is overpriced and argues the company faces declining foot traffic, quality control issues, and food safety risks similar to 2015-2018 outbreaks, predicting stock will fall to $13/share by EOY based on expected disappointing Q2 earnings. Key risks include regulatory enforcement, litigation from food safety incidents, and potential short squeeze if business fundamentals improve.
TICKERCMG USERu/Plneaqqle
RATING BEARISH ENTRY $29.34
POSITION 340 sh SYN BOOK VAL $9975.60
CURRENT $36.03 P&L % +22.80%
CURR VAL $12250.20 P&L $ +2274.60

Chipotle is overpriced and quality is trash. Recently I bought some for my friends and we ended up with food poisoning. I believe it is only a matter of time before another large food poisoning outbreak happens like in 2015 and 2018. Also, the manager at the chipotle would charge us extra chicken when we asked for just a little more. The employees at that location would spill some of each vegetable or protein all over the counter mixing everything. Adding on, the recent free bowls and burrito promotions show that their foot traffic is declining. I believe that earnings on July 29th will be way lower than expected and it will go to $13 a share EOY.

Position: Shorting 300 shares on Monday along with 9/18 $30 strike puts. Will consider shorting more as I visit Chipotle locations locally and observing foot traffic.