Yesterday at the Value Investing Congress in New York City, the headline speaker of the day was David Einhorn of Greenlight Capital. Einhorn’s short positions have become somewhat notorious for destroying companies’ stock prices, so the eager conference attendees were quite excited to see what Einhorn is betting against this year.

Last year, his famous short was Green Mountain, which he believes should be very threatened by Starbucks and their entry into the do-it-yourself cups market.

This year, Einhorn announced that he was short the Mexican food restaurant Chipotle, citing increased competition from the much larger Taco Bell, who recently introduced their new Cantina Bell menu. Einhorn believes Taco Bell is a threat to Chipotle on both price and taste.

Reuters blogger Felix Salmon embarked on a taste test to see just how the foods from these two organizations compare, arguing that perhaps Einhorn overestimated the quality of the new Taco Bell menu.

 

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