This gets us to Chipotle and this recap of what I said on air Tuesday:
Its price rise of nearly 10 percent was based on no news—other than, perhaps, the long anticipated opening last week of the company's Shophouse Asian concept in Washington. (It got rave reviews.)
That single restaurant, with no other ones planned, in effect added $1 billion, or roughly 11 percent, to the company's market cap.
Is one restaurant really worth that much?
Investors hoping for a roll-out of thousands more obviously thinks so.
But one successful chain doesn't guarantee that another by the same operators will be successful. (This is, after all, the finicky restaurant business.) And if the company does launch a chain, industry insiders will be watching to see how it's structured. Trying to put a new concept under the same operating/purchasing/purchasing structure as the original—in pursuit of synergies—can be troublesome.