CHIPOTLE MEXICAN GRILL, Inc. (CMG-B)

karnivore (62.95) Submitted: 2/26/2009 3:23:43 AM : Start Price: $52.16 CMG-B Score: +14.81

I've been traveling in the heartland and chipotle is still selling the hell out of their food. I mean the freaking lines are around the corner during the work week.. It's INSANE. I think the expectation that people will bag on low-cost food like this is overblown. For better or worse, Americans will bust $7 on lunch at least several times a week even in a recession, perhaps even more so, as it's a psychological comfort in bad times to eat food you really like and are comfortable with. Now, coffee, SBUX, especially, is another story. Anyway, I'm a fan of cheap, ahem, I mean value-oriented, fast-food chains trading at solid valuations. I think we could see CMG drop to $40 but I think the overall market will be down more and I'll add CMG proper to my recs if it hits that level.. A little Foolish CAPS cost-averaging. Steak-n-Shake is looking good as well.