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Chipotle: Still Room For Earnings Growth

Dec. 03, 2021 8:06 AM ETChipotle Mexican Grill, Inc. (CMG)6 Comments
Ben Howard profile picture
Ben Howard


  • Chipotle is one of the largest restaurant businesses operating over 2,888 restaurants and holds an enterprise value of $50 billion.
  • With total revenues increasing 7.1% in 2020, I believe Chipotle displayed its iron-clad business model through its positive growth rate in the midst of a pandemic.
  • Through its food integrity initiative, focus on digital services, and potential expansion internationally, Chipotle has a solid growth runway in my opinion.

New York City Sues Chipotle For $150 Million Over Workweek Law Violations

Michael M. Santiago/Getty Images News


Chipotle's (NYSE:CMG) future growth runway will be driven by three main catalysts in my opinion. First, I believe domestic growth may be spurred through Chipotle's "Responsibly Raised®" food integrity program where

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Ben Howard profile picture
Industry-agnostic, special situations/GARP investor. My focus is on businesses that the market is significantly mispricing. This includes special situations and high-quality companies whose future growth is being undervalued. I look for companies with high normalized earnings yields and quality business models that possess high or growing reinvestment rates. My portfolio is typically highly concentrated on a few ideas that I know well.

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Comments (6)

Mark Krieger profile picture
hell of a rally this past week...short the rip?
Mark Krieger profile picture
it went up $100 today...this one is too volatile for my blood
No Guilt profile picture
Where is old guy from NYC who was saying this “over priced taco stand” was a short at $200 and it was going to $100 and that he gets WAY better food for way cheaper in Manhattan.
07 Dec. 2021
@No Guilt He made a fortune shorting and covering on the dips. priced at nearly 70x forward earnings with only a 7% revenue growth (if you actually believe the manipulated numbers) and that's why this stock can drop 100 points on any given day. If/when this doesn't beat massaged estimates its going to collapse, just like Krispy Cream back in the day. That "guy"? Probably buying a vacation home while you are posting emojis.
No Guilt profile picture

He was too wimpy to short at $200. Hope he’s ok, it’s just money.

Based on his silence I’m afraid that guy lost a lot more than his shirt.
J-Flo profile picture
Love their burrito bowl… thanks for the article! 👌
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