Jon Quast

I really do.

But Lululemon, to me, it has a really good balance between its growth rate and its valuation, maybe the most favorable balance between those two factors.

For me, it has the nod of the best stock today.

This is a shocking development for sure.

It's a good question, Travis.

Let's just start by saying that over the long-term, stock price is correlated with profits.

Chipotle's profits are somewhat OK right now, but investors clearly believe that they're headed lower.

in coming years.

That's why this stock has fallen as much as it has.

I think there's some credence to the fear that Chipotle's profits could fall.

There's a little trend emerging.

If you look over the last three quarters, Chipotle has opened about 200 new locations.

Average unit volumes have dropped about 3% over that time.

That's actually pretty rare for Chipotle.

Those average unit volumes, the sales per location per year, have gone up consistently over the last 20 years, let's say.

Lower sales volume at a location is going to lead to lower profit margins.

That's just how it works.

Accordingly, the restaurant-level operating margin has fallen over the past year.

Not a ton, it's still good, but it has dropped.

You start looking at a company like Chipotle that has already scaled so much, almost 4,000 locations right now, it thinks that it can add 3,000 more.