Friday, December 31, 2010

Chipotle Sales Growth Ain't No Jive

Since opening its first restaurant in 1993, Chipotle (CMG-$214.00) has elevated a simple menu of burritos, tacos, and salads into meals that legions of loyal customers find zesty and more sophisticated in flavor.

By not straying from chairman and founder Steve Ells‘ original vision of making good, affordable Mexican food, Chipotle has emerged the market leader in the $4 billion Mexican-themed, fast-casual, dining segment, with 1,023 units opened in 33 states and Toronto, Canada (2) as of September 30.

Moving forward, can the national burrito chain continue its impressive store and sales-comp growth rates as competitors, such as Taco Bell, aggressively pursue discount pricing strategies to grab traffic gains at expense of the Denver-based Mexican food-operator? Read More at CBSi....

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.


james moylan said...

I have a web site where I cover stocks under five dollars. I would like to comment about Chipotle Mexican Grill, Inc. I think this is a very over valued stock.the market on this thing is over 6 billion the company only does 2 billion in annual sales. I am an astute value investor. why not buy a stock like carrols restaurant group it operated 312 quick-service restaurants as franchisee under the Burger King trade and 91 Pollo Tropical restaurants the company is solidly profitable it has a market cap of just 167 million yet does over 800 million in annual sales.the stock trades around 8 dollars a share I think the stock could get to 40.00 dollars over the next five years. I also believe because of the companies low valuation it could be an attractive take over target.

Dem Politico said...

Good background article.

CMG is differentiated and not sure you can call Taco Bell much of a competitor--differert market focus.
Also, CMGs Type A remodel seems spot on for the dirth of new real estate mall development.

John A. Gordon
Chain Restaurant Earnings and Economics Experts