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Chipotle Mexican Grill Inc CMG

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Stock XNYS Rating as of
$3,195.40 −43.83 (1.35%)
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As of Delayed Price Closed
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Company Report

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Chipotle's Operational Improvements and Cash-on-Cash Returns Underpin Compelling Prospects

Sean Dunlop

Chipotle's business strategy rests on five pillars: running successful restaurants, attracting and retaining diverse talent, making the brand visible, relevant, and loved, investing heavily in restaurant tech and innovation, and improving access and convenience for customers. In our view, the company has carved out an enduring niche in the US restaurant landscape, with competitive menu prices, extreme convenience, and "food with integrity" allowing it to lure away customers from both casual dining and traditional fast-food competitors.

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Price vs Fair Value

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CMG is trading at a 137% premium.
Price
$3,195.40
Fair Value
$6,614.00
Uncertainty
Medium
1-Star Price
$9,456.40
5-Star Price
$2,911.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Accelerated digital adoption during the pandemic supercharged Chipotle's loyalty program, which should continue to drive increased order frequency and reduce customer churn.

Bears

Consumer spending may shift toward grocery and convenience store channels if the macroenvironment continues to deteriorate, as it has during previous periods of pressure.

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Trading Information

Previous Close Price
$3,239.23
Day Range
$3,187.46–3,239.22
52-Week Range
$1,768.64–3,260.00
Bid/Ask
$3,080.00 / $5,080.68
Market Cap
$87.77 Bil
Volume/Avg
168,471 / 237,529

Key Statistics

Price/Earnings (Normalized)
66.93
Price/Sales
8.66
Dividend Yield (Trailing)
—
Dividend Yield (Forward)
—
Total Yield
0.56%

Company Profile

Chipotle Mexican Grill is the largest fast-casual chain restaurant in the United States, with systemwide sales of $9.9 billion in 2023. The Mexican concept is predominately company-owned, although it recently inked a development agreement with Alshaya Group in the Middle East. It had a footprint of nearly 3,440 stores at the end of 2023, heavily indexed to the United States, although it maintains a small presence in Canada, the UK, France, and Germany. Chipotle sells burritos, burrito bowls, tacos, quesadillas, and beverages, with a selling proposition built around competitive prices, high-quality food sourcing, speed of service, and convenience. The company generates its revenue entirely from restaurant sales and delivery fees.
Sector
Consumer Cyclical
Industry
Restaurants
Stock Style Box
Large Growth
Total Number of Employees
116,068
Website
https://www.chipotle.com

Competitors

Valuation

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Metric
CMG
SBUX
YUM
Price/Earnings (Normalized)
 66.9320.9325.94
Price/Book Value
 26.11——
Price/Sales
 8.662.395.53
Price/Cash Flow
 49.8711.6722.47
Price/Earnings
CMG
SBUX
YUM

Financial Strength

Metric
CMG
SBUX
YUM
Quick Ratio
 1.510.561.13
Current Ratio
 1.650.861.49
Interest Coverage
 —10.404.66
Quick Ratio
CMG
SBUX
YUM

Profitability

Metric
CMG
SBUX
YUM
Return on Assets (Normalized)
 16.58%15.34%24.93%
Return on Equity (Normalized)
 45.82%——
Return on Invested Capital (Normalized)
 18.10%29.54%56.97%
Return on Assets
CMG
SBUX
YUM
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