Out Fox The $treet

After the close, Chipotle Mexican Grill (CMG) reported earnings that dazzled the market. Yet, the restaurant stock is still recovering from the health scare juicing comp sales for a highly expensive stock

After the market selloff, very few stocks are still overvalued. Chipotle Mexican Grill (CMG) is one of those stocks as the restaurant company continues to trade at extreme premium valuations.

Chipotle announced the restaurant is moving their headquarters from Denver to Newport Beach. The company is shutting down the Denver office and facing substantial re-organization costs. The move does nothing to improve the food with integrity concept desired by customers. Expect EPS estimates to collapse as the company has limited corporate personnel to implement new strategies. Only a few months ago,  Chipotle Mexican Grill  ( CMG ) announced that Brian Niccol would take over as the new CEO from the co-founder. The stock has surged on this news rising $100 now, but my  investment thesis  has maintained that investors need to dump shares on this rally as the most likely outcome is disruption of the business model and cultural change from the hiring of an exec from Taco Bell that was at odds with the people at Chipotle. Today, the new CEO fired the first warning sign on this disruptive period. Read the full article on Seeking Alpha.  Disclo...

Chipotle Mexican Grill (CMG) is up about 15% today as the market cheers the hiring of a new CEO from Taco Bell. While CEO Brian Niccol was highly successful at Taco Bell, he isn't a good fit for the Chipotle culture. A shift from "food with integrity" will be disastrous to the stock in the short run. Don't forget that JCPenny (JCP) originally cheered the hiring of Ron Johnson and that about killed the retailer as he attempted to change the corporate culture.

Chipotle dips below $300 following highly disappointing Q3 results. The negative EPS trend still signals to avoid the stock. The downward shift in store opening growth will further impact the long-term potential. After the close,  Chipotle Mexican Grill  ( CMG ) reported highly disappointing  Q3 results . The numbers were so bad that my  previous article  questioned whether $300 would hold and now the focus can shift to the $250 level. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Chipotle misses Q2 earnings estimates, but the restaurant concept does return to profits. The company is seeing improving traffic trends from the Chiptopia loyalty program, but the program comes at a high cost. The stock continues to trade at manic levels and far exceed the values of other strong restaurant concepts that don't face food safety issues. Chipotle Mexican Grill (NYSE: CMG )  remains a shell of its prior self in all ways except valuation. The company reported that  Q2 earnings  results missed analyst estimates, yet the stock is bouncing around in the after hours far above $400. The market is holding on to slight traffic improvements from the new loyalty program, when the reality isn't that impressive. Read the full article on Seeking Alpha.  Disclosure: Long ZOES

The CDC continues to report new cases related to the E. coli outbreak. The new cases are related to the original outbreak dates that ended November 7. Previous health illness cases and valuation concerns suggest avoiding Chipotle Mexican Grill even on the selloff predicted for Monday trading. After the close on Friday, Chipotle Mexican Grill (NYSE: CMG ) updated investors and the news wasn't very good. The restaurant chain that prides itself on serving quality food is having a difficult time shaking the recent E. coli outbreak. Read the full article on Seeking Alpha. Disclosure: No position mentioned. Please review the disclaimer page for more details.