Company name Chipotle Mexican Grill, Inc.
Stock ticker CMG
Live stock price [stckqut]CMG[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Good
EPS growth Good
P/E growth Fair
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $567.72
Target stock price (averages with growth) $774.03
Target stock price (averages with no growth) $531.09
Target stock price (manual assumptions) $469.45

The following company description is from Google Finance: http://www.google.com/finance?q=cmg

Chipotle Mexican Grill, Inc. and its subsidiaries (Chipotle) operate restaurants throughout the United States, as well as two restaurants in Toronto, Canada and two in London, England. As of December 31, 2011, Chipotle operated 1,230 restaurants, which includes one ShopHouse Southeast Asian Kitchen. The Company’s restaurants serve a menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads. The Company manages its operations and restaurants based on six regions that all report into a single segment. As of December 31, 2011, the Company delivered ingredients and other supplies to its restaurants from 22 independently owned and operated regional distribution centers. Chipotle categorizes its restaurants as either end-caps (at the end of a line of retail outlets), in-lines (in a line of retail outlets), free-standing or other.

 

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. I am taking Chipotle off of my Watch List.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

Company name Chipotle Mexican Grill, Inc.
Stock ticker CMG
Live stock price [stckqut]CMG[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Good
EPS growth Good
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $519.82
Target stock price (averages with growth) $701.06
Target stock price (averages with no growth) $469.44
Target stock price (manual assumptions) $521.35

The following company description is from Google Finance: http://www.google.com/finance?q=cmg

Chipotle Mexican Grill, Inc. and its subsidiaries (Chipotle) operate restaurants throughout the United States, as well as two restaurants in Toronto, Canada and two in London, England. As of December 31, 2011, Chipotle operated 1,230 restaurants, which includes one ShopHouse Southeast Asian Kitchen. The Company’s restaurants serve a menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads. The Company manages its operations and restaurants based on six regions that all report into a single segment. As of December 31, 2011, the Company delivered ingredients and other supplies to its restaurants from 22 independently owned and operated regional distribution centers. Chipotle categorizes its restaurants as either end-caps (at the end of a line of retail outlets), in-lines (in a line of retail outlets), free-standing or other.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in this stock.

 

Company name Chipotle Mexican Grill, Inc.
Stock ticker CMG
Live stock price [stckqut]CMG[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Good
EPS growth Good
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $436.04
Target stock price (averages with growth) $610.21
Target stock price (averages with no growth) $430.45
Target stock price (manual assumptions) $445.05

The following company description is from Google Finance: http://www.google.com/finance?q=cmg

Chipotle Mexican Grill, Inc. and its subsidiaries (Chipotle) operate restaurants throughout the United States, as well as two restaurants in Toronto, Canada and two in London, England. As of December 31, 2011, Chipotle operated 1,230 restaurants, which includes one ShopHouse Southeast Asian Kitchen. The Company’s restaurants serve a menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads. The Company manages its operations and restaurants based on six regions that all report into a single segment. As of December 31, 2011, the Company delivered ingredients and other supplies to its restaurants from 22 independently owned and operated regional distribution centers. Chipotle categorizes its restaurants as either end-caps (at the end of a line of retail outlets), in-lines (in a line of retail outlets), free-standing or other.

 

Confident Investor comments: I understand that at the time of this writing, Chipotle has taken a major reduction in price. This is why I am putting them on my Watch List. The market correction is likely too extreme. At this price and at this time, I think that a Confident Investor can confidently invest in this stock.

 

While you are enjoying the beginning of summer with a 3-day weekend. Please do not forget why you are not working today.

Remember those who served. All gave some and some gave all they had.

For the past couple weeks (and for the next several weeks) I am publicly reviewing my Watch List. This is an important task that all investors should do on a regular basis. Analyzing your investments to make sure they are performing to your standards is essential to your success as an investor. While I am not as popular at Jim Cramer, I do like to follow his advice and announce when I change my mind on a stock.

This week, I removed Caterpillar [stckqut]CAT[/stckqut], Chipotle [stckqut]CMG[/stckqut], and Carbo Ceramics [stckqut]CRR[/stckqut].  For different reasons, each of these companies was not performing to my expectations. If you want to understand this logic, you should read my book, The Confident Investor.   You can purchase my book wherever books are sold such as AmazonBarnes and Noble, and Books A Million. It is available in e-book formats for NookKindle, and iPad.

You can make sure that you are receiving my updates by subscribing to me in several forums:

I hope that you enjoy the continued conversation.