Chipotle (CMG) is one of those stocks, where you look at the share price and think "This stock costs what!?" I know I used to think that everyday, I mean gosh I could buy a car with just 4 shares! So I used to sit and wait for a buying opportunity as if Chipotle was a bubble just waiting to pop. I thought the share price was way too high, and the fact that it traded at 44 times earnings had me thinking it was only a matter of time before the clock struck midnight on this stock. To me, I just thought Chipotle was the same as any other fast food restaruant, except way to inflated and over priced.
That was until I started noticing that every time I was in a Chipotle, the queue would stretch the entire way around the restaurant, and sometimes even out the door! I couldn't believe it! Then I started to think about all the positives which Chipotle brought to the table: the fresh ingredients, naturally raised pork, chicken, and steak, online ordering process, and quick yet casual atmosphere. All of these seemed like such pluses, but there is one which excites me even more than those listed. This is the number three. Three, as in the number of Chipotle restaurants outside the U.S. That's right, as popular as Chipotle is in the U.S, and gaining popularity as we speak, there is still a completely untapped market out there! Chipotle already has restaurants in Canada and the U.K, and has plans to open a store in France this coming year. The fact hat Taco Bell has over 250 stores outside the U.S proves that Mexican and southwestern menus do succeed over seas. However unlike Taco Bell, Chipotle represents a hybrid restaurant, (part fast food, part casual dining) which I feel will attract more consumers than the strictly fast food style of Taco Bell. Therefore I feel this long term international growth, combined with the still rampant domestic growth, makes Chiptole a great investment for years to come.
* I do not currently have a position in Chipotle Mexican Grille (CMG)
A Lot of Green in Store For Chipotle, and I'm Not Talking About the Avacado's.
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