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Chipotle Mexican Grill just missed big time on its third-quarter earnings results. The fast, casual Mexican restaurant’s earnings came in at $2.27, below analysts’ estimates of $2.29 per share.
Shares of Chipotle were last trading down more than 12% in after-hours.
This is definitely a huge win for hedge fund hot-shot David Einhorn, the founder of Greenlight Capital.
Earlier this month at the Value Investing Congress, Einhorn recommended shorting Chipotle.
He said the biggest challenge Chipotle faces is competing with a resurgence in Taco Bell, which has a much lower price point.
Einhorn also explained that Taco Bell’s Doritos Locos Tacos have been a huge success. He said this gave Taco Bell strong momentum and that was before the Cantina Bell launch.
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