Investor: McDonald’s success is bad for burger stocksInvestor: McDonald’s success is bad for burger stocks

This post is part of the On the Margin blog.

We’re not the only ones who say burger chains stand to lose in a McDonald’s Corp. resurgence.

Jim Chanos, founder of the short-selling investment firm Kynikos Associates, told CNBC this week that McDonald’s success could be bad news for its rivals. 

“McDonald’s righted the ship and has now reinvested aggressively in its restaurants, in its franchisees, and upping the game for everybody else,” he said. He called the burger market “a shrinking pie.”

“When the big guy begins to take more of the shrinking pie, that leaves a lot less for everybody else.” 

Short sellers bet that a company’s stock will fall. In a short sale, an investor borrows a stock and sells it at the current price, then buys it agai...