In this video, Fool analysts Austin Smith and Jason Moser take a look at the bear case for Chipotle Mexican Grill  and why investors might consider selling the stock.

Jason is bullish on the restaurant stock, but says investors should always be looking for red flags. What are those red flags for Chipotle? He points to three key areas.

First is the competition in the fast-casual dining scene, including that coming from traditional fast-food chains like McDonald's . Investors should look for any sustained decline in same-store sales.

Cost inflation is a second concern, Jason says. Chipotle believes in "food with integrity." But that doesn't come cheap. Cost increases could shrink margins.

Finally, investors should also keep an eye on founding CEO Steve Ells, who has been very involved in the business to this point. Austin draws a comparison to Starbucks , which struggled mightily when founding CEO Howard Schultz first left the business.

Chipotle's stock has been on an absolute tear under Ells, ever since the company went public in 2006. Unfortunately, 2012 hasn't been kind to Chipotle's stock, as investors question whether its growth has come to an end. Fool analyst Jason Moser's new premium research report analyzes the burrito maker's situation and answers the question investors are asking: Can Chipotle still grow? If you own or are considering owning shares in Chipotle, you'll want to click here now and get started! 

The article Is It Time to Sell Chipotle? 3 Signs Investors Should Know originally appeared on

Austin Smith owns shares of McDonald's. Jason Moser owns shares of Chipotle Mexican Grill, Panera Bread, and Starbucks. The Motley Fool owns shares of Chipotle Mexican Grill, McDonald's, Panera Bread, Starbucks, and Whole Foods Market and has the following options: short JAN 2013 $47.00 puts on Starbucks. Motley Fool newsletter services recommend Chipotle Mexican Grill, McDonald's, Panera Bread, Starbucks, 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.

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