Chipotle: We Back Bill Ackman's Stance

Sep. 27, 2022 9:55 PM ETChipotle Mexican Grill, Inc. (CMG)28 Comments

Summary

  • Chipotle exhibits impressive operational leverage metrics.
  • The company's comparable store sales are surging.
  • An earnings-based valuation model implies the stock is severely undervalued.
  • The stock's profitability metrics are best in class.
  • Although Chipotle's stock is well aligned, beware of its quantitative risks and systemic market pressure.
Healthy Homemade Mexican Carnitas Burrito Bowl

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Bill Ackman's Pershing Square recently released a bullish thesis on Chipotle (NYSE:CMG) stock, citing "shareholder value creation" as a catalyst. Having looked at the stock holistically, we also believe Chipotle provides appreciative value for money as its fundamental growth metrics are aligned due

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Methods: Factor Analysis/Smart Beta, Neural Networks, Street Gossip, and Common Sense.

This is Independent Research and Not Financial Advice.



Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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