NEW YORK, Oct 2 (Reuters) - Hedge fund manager David Einhorn said he thinks fast food restaurant chain Chipotle Mexican Grill Inc will face significant competition and additional costs, making it an attractive "short."
In a presentation where he highlighted some stocks he expects will rise, Einhorn also turned his powerpoint presentation to national chain Chipotle.
He said competition from Taco Bell will be tough for Chipotle. Also he said that the summer's drought has made grains more expensive and prompted an early slaughter of cows. But he expects meat, while inexpensive now, to rise in cost.
Additionally he said that the company will face headwinds when new insurance laws will force the company to offer coverage to its employees. And he noted that the company has had issues with undocumented workers and that the U.S. government has taken an interest in the matter.
Hedge fund managers, unlike mutual fund managers, can bet against a stock price by "going short" or borrowing the stock and hoping to repay the loan later for less.
Chipotle's stock was down 6.5 percent to $295.68 after Einhorn's remarks.
(Reporting By Svea Herbst-Bayliss; Editing by Gerald E. McCormick)
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Keywords: HEDGEFUNDS EINHORN/CHIPOTLE