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  • CMG Should Scrap Current Plans for a New Asian Concept and Just Buy Sushirrito 1 comment
    Jan 26, 2011 3:14 PM | about stocks: CMG

    Recently, Chipotle Mexican Grill (CMG – $218.20) management has been discussing plans to develop an Asian concept with a ‘model’ similar to Chipotle (fresh ingredients, transparent prep, etc.). 

    Why waste time developing a new concept when there appears to be a proven winner in operation today?  Sushirrito ( is located in San Francisco in SOMA bordering the financial district.  It’s getting rave reviews (click here).  We’ve never seen lines so long!  Ironically, it’s right across the street from a current Chipotle location (comp store sales are likely imploding at this particular Chipotle store).

    Something tells us that you’ll be hearing more about Sushirrito in the near future.


    Stocks: CMG
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  • Chad Brown, CFA
    , contributor
    Comments (132) | Send Message
    Sushirrito (sushi plus burrito) looks from its web site like a one store operation. I would prsume they have plans to grow it. They very likely looked at Chipolte model and copied aspects of it. They are not likely to be willing to sell for the cost of reproducint their one store. And CMG is not likely to be willing to pay a huge multiple of the cost of one restaurant since they think highly of their own abilities, with good reason. So my guess is there is no deal. Instead, both CMG and Sushirrito will expand at a rate faster than the growth of the market and both will take share from existing players until one or the other reaches saturation and the margins contract to average levels.
    5 Feb 2011, 02:24 PM Reply Like
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