Chipotle stock was up midday at $348 per share. With a price increase of nearly 57 percent year over year, it was also the No. 9 top-performing stock of 2011.
Goldman Sachs added Chipotle to Americas Conviction List with an expected EPS growth rate of 35 to 40 percent in 2012. Other favorites on the “buy” list were McDonald’s, Darden and Tim Horton’s.
The Cheesecake Factory, Yum! Brandsand Wendy’s were on the “sell” list, and Dunkin’ Donuts was upgraded to “neutral” from “sell.”
Trader Zack Karabell thought Chipotle stock wouldn’t do well in a significant market pullback.
“I think Chipotle is always a dangerous stock in a volatile market and a good stock in a good market,” he said.
“I’d still lean toward McDonald’s. They just seem to do everything right,” OptionMonster co-founder Pete Najarian said. “That’s the name that’s executing. That’s the name that has even more growth going in front of them in Asian markets.”
Najarian also liked Yum.
“I’d love to see a pullback in Yum to get an opportunity because they’re going to explode,” he said. “They’ve already got 3,000 KFCs in China. I think that’s a market they can still tap into, make even more money over there.”
Trader Jon Najarian said he liked Darden.
“I think overall this stock is cheap,” he said. “I think it still trades higher.”