Chipotle Mexican Grill (CMG)

Announced a 50-for-1 stock split last March. Shares rallied 13% since then, helped by a great quarter last April.

Their stock split will attract more investors. Great leadership. A winner.

Fantastic company. Very high valuation. Would recommend holding. Great fundamentals. 

It has delivered but he wouldn't buy it today since the valuation is high resulting in too high a premium. The restaurant business is cyclical.

It reports Wednesday. They've integrated robots into their operations, have a good point-of-sale and have the best menu with real value. They own their stores and it's not a franchise model. Average volumes per store keep rising.

He expects shareholders to receive those extra shares and feel like selling some. However, he's more concerned with the company's performance than the split. Shares will run before the split, then fall back. The split will make shares more liquid.

Is up 15% since February and 68% in the past year. They have announced a stock split. They last reported a super quarter.

The split doesn't add an economic benefit. Many investors still don't realize that it's the same return before or after a split. He's never seen a restaurant chain carry such a premium multiple for so long, but it's deserved. They continue to beat.

Companies split shares when they're doing well, so this split validates their success, though it doesn't effect the fundamentals. The split generates excitement for the stock.

The news is phenomenal for stockholders and employees (who become shareholders). Doubts that the split will have much effect, though it invites a new class of investor. Though it adds to trade liquidity. Customers are accepting higher prices and the company keeps introducing new products.

They reported mixed numbers after the bell: in-line same-store sales, light revenues, but a bottom-line per share earnings beat. They're making more money because of better restaurant margins as key costs finally are declining. But they guided lower same-store sales this quarter; they're being conservative. Shares were up 50% YTD going into this quarter and he thought the report was overall good.

The last quarter has seen a major improvement in revenue growth and shares now have price momentum

It reports Tuesday. They will hire 15,000 people for burrito season, so business must be great. Some say earnings estimates for this year are too expensive, but he feels they are too low.