Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. For years, Chipotle Mexican Grill NYSE: CMG defied every logical expectation for an established fast-casual restaurant.

In , comparable-store sales comps grew The first half of was more of the same, with comps up But during the summer, stories surfaced out of the West Coast about norovirus and E. It didn't stop there: The food-related illness outbreak spread across the country before dying down by December. By then, the damage was done. And the company has been trying to recover since. Motley Fool analyst Brian Stoffel has already declared that he'll be selling the stock when trading rules allow.

Chipotle Mexican Grill, Inc. - CMG - Stock Price Today - Zacks

But John Maxfield has no plans for selling his stake anytime soon. Below, Brian presents his core argument for selling his shares, while John has a chance to respond to Brian's concerns.

I was a longtime -- and vocally supportive -- shareholder of Whole Foods NASDAQ: I loved the company's commitment to all stakeholders and its aggressive role in bringing healthy eating into the nation's consciousness.

For a long time, the approach worked very well for shareholders. Starting in , the competition started crushing Whole Foods' growth ambitions.

For the general public, this was a win-win: People are eating healthier food that is more responsibly grown for less money.

But for Whole Foods shareholders, it hasn't been pretty. In short, Whole Foods really had no sustainable competitive advantage -- people will get their organic goods wherever they are offered. While lots of people are worried about the food safety issues at Chipotle, I actually think that's a catalyst for the stock's long-term downtrend, not the cause. Instead, I'm worried about Chipotle playing out in much the same fashion that Whole Foods did.

Chipotle was the first national chain to focus on ethically sourced food made fresh in-house, with a very simple menu to boot. That first-mover status led to massive investor gains. But there's nothing to stop the competition from copying the exact same thing. Already, similarly focused competitors are cropping up like wildfire, while more entrenched players shift their menu focus.

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This isn't to say I think Chipotle is doomed. I believe it will survive just fine, and they can surely count on me as a customer moving forward.

But trading at 52 times trailing earnings -- and 36 times estimates for next year -- I just don't think the stock is worth what it's trading for right now. I find that to be extremely insightful. But I nevertheless disagree with it. To say that the food-safety issues Chipotle has experienced over the past year are a catalyst is to suggest that they are merely contributing to an otherwise independent downward trend.

The cause of that trend, if I'm interpreting Brian correctly, is the encroachment of competitors. It'd be silly for me to claim that competitors won't move into Chipotle's space.

But there's plenty of space for all of these companies to thrive. Additionally, Chipotle is still at the beginning of its lifecycle as a food chain.

It's building roughly new locations a year. Its same-store sales will almost certainly begin growing once again in the first quarter of next year. It has yet to expand internationally in a meaningful way. In short, I understand why people are concerned about Chipotle's future. John Mackey, co-CEO of Whole Foods Market, is a member of The Motley Fool's board of directors.

Brian Stoffel owns shares of Chipotle Mexican Grill. John Maxfield owns shares of Chipotle Mexican Grill. The Motley Fool owns shares of and recommends Chipotle Mexican Grill, Costco Wholesale, Panera Bread, and Whole Foods Market. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

The Motley Fool has a disclosure policy. Brian Stoffel has been a Fool since , and a financial journalist for the Motley Fool since He tends to follow the investment strategies of Fool-founder David Gardner, looking for the most innovative companies driving positive change for the future. Skip to main content The Motley Fool Fool. Premium Advice Help Fool Answers Contact Us Login. Latest Stock Picks Stocks Premium Services. Stock Advisor Flagship service.

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Brian Stoffel and John Maxfield. Oct 30, at Chipotle Mexican Grill NYSE: Whole Foods Market NASDAQ: Jack in the Box NASDAQ: Prev 1 2 3 4 Next. Motley Fool push notifications are finally here Allow push notifications to help you stay on top of Breaking investing news Earnings coverage Market movers Special offers and more Subscribe to notifications You can unsubscribe at any time.