DB:C9F

Stock Analysis Report

Chipotle Mexican Grill

Executive Summary

Chipotle Mexican Grill, Inc., together with its subsidiaries, operates Chipotle Mexican Grill restaurants.

Snowflake

Fundamentals

High growth potential with excellent balance sheet.


Similar Companies

Share Price & News

How has Chipotle Mexican Grill's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.3%

C9F

3.7%

DE Hospitality

1.4%

DE Market


1 Year Return

97.5%

C9F

-16.3%

DE Hospitality

3.7%

DE Market

Return vs Industry: C9F exceeded the German Hospitality industry which returned -16.3% over the past year.

Return vs Market: C9F exceeded the German Market which returned 3.7% over the past year.


Shareholder returns

C9FIndustryMarket
7 Day-1.3%3.7%1.4%
30 Day-1.9%21.6%1.3%
90 Day9.5%26.1%3.4%
1 Year97.5%97.5%-10.6%-16.3%7.0%3.7%
3 Year100.9%100.9%16.0%0.5%18.5%8.3%
5 Year54.4%54.4%35.7%8.7%42.2%22.9%

Price Volatility Vs. Market

How volatile is Chipotle Mexican Grill's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Chipotle Mexican Grill undervalued compared to its fair value and its price relative to the market?

93.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: C9F (€742.3) is trading above our estimate of fair value (€235.96)

Significantly Undervalued: C9F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: C9F is poor value based on its PE Ratio (93.6x) compared to the Hospitality industry average (32.3x).

PE vs Market: C9F is poor value based on its PE Ratio (93.6x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: C9F is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: C9F is overvalued based on its PB Ratio (15.2x) compared to the DE Hospitality industry average (2.6x).


Next Steps

  • Explore potentially undervalued companies in the Consumer Services industry.

Future Growth

How is Chipotle Mexican Grill forecast to perform in the next 1 to 3 years based on estimates from 32 analysts?

26.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: C9F's forecast earnings growth (26.6% per year) is above the savings rate (0.2%).

Earnings vs Market: C9F's earnings (26.6% per year) are forecast to grow faster than the German market (12.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: C9F's revenue (11% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: C9F's revenue (11% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: C9F's Return on Equity is forecast to be high in 3 years time (24.8%)


Next Steps

Past Performance

How has Chipotle Mexican Grill performed over the past 5 years?

-24.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: C9F's earnings have declined by -24.9% per year over the past 5 years.

Accelerating Growth: C9F's earnings growth over the past year (46.9%) exceeds its 5-year average (-24.9% per year).

Earnings vs Industry: C9F earnings growth over the past year (46.9%) exceeded the Hospitality industry -28.4%.


Return on Equity

High ROE: C9F's Return on Equity (16.2%) is considered low.


Return on Assets

ROA vs Industry: C9F has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: C9F's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Chipotle Mexican Grill's financial position?


Financial Position Analysis

Short Term Liabilities: C9F's short term assets ($832.4M) exceeds its short term liabilities ($548.3M)

Long Term Liabilities: C9F's short term assets (832.4M) do not cover its long term liabilities (2.6B)


Debt to Equity History and Analysis

Debt Level: C9F is debt free.

Reducing Debt: C9F has not had any debt for past 5 years.

Debt Coverage: C9F has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: C9F has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: C9F has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if C9F's debt is covered by short term assets.


Next Steps

Dividend

What is Chipotle Mexican Grill's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage6.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate C9F's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate C9F's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if C9F's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if C9F's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of C9F's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Chipotle Mexican Grill's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Brian Niccol (45yo)

1.6yrs

Tenure

US$33,730,294

Compensation

Mr. Brian R. Niccol has been Chief Executive Officer and Director at Chipotle Mexican Grill, Inc., since March 05, 2018. Mr. Niccol has been an Independent Director of Harley-Davidson, Inc. since July 25,  ...


CEO Compensation Analysis

Compensation vs. Market: Brian has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the German market.

Compensation vs Earnings: Insufficient data to compare Brian's compensation with company performance.


Management Age and Tenure

1.6yrs

Average Tenure

50yo

Average Age

Experienced Management: C9F's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

2.8yrs

Average Tenure

55.5yo

Average Age

Experienced Board: C9F's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: C9F insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$43,500,32427 Sep 19
Pershing Square Capital Management, L.P.
EntityCompany
Shares58,400
Max PriceUS$744.97
SellUS$808,46229 Jul 19
Albert Baldocchi
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,164
Max PriceUS$694.56
SellUS$51,051,25028 Jun 19
Pershing Square Capital Management, L.P.
EntityCompany
Shares80,000
Max PriceUS$640.07
SellUS$31,834,93114 Feb 19
Pershing Square Capital Management, L.P.
EntityCompany
Shares60,000
Max PriceUS$534.31
SellUS$48,933,20107 Nov 18
Pershing Square Capital Management, L.P.
EntityCompany
Shares118,307
Max PriceUS$414.87

Ownership Breakdown


Management Team

  • Jim Slater

    Managing Director of Europe

    • Tenure: 3.1yrs
  • Jack Hartung (62yo)

    Chief Financial Officer

    • Tenure: 17.8yrs
    • Compensation: US$4.98m
  • Roger Theodoredis (60yo)

    Chief Legal Officer & General Counsel

    • Tenure: 1yrs
  • Ashish Kohli (50yo)

    Head of Investor Relations

    • Tenure: 0yrs
  • Brian Niccol (45yo)

    CEO & Director

    • Tenure: 1.6yrs
    • Compensation: US$33.73m
  • Curt Garner (49yo)

    Chief Technology Officer

    • Tenure: 2.6yrs
    • Compensation: US$8.13m
  • Marissa Andrada (51yo)

    Chief People Officer

    • Tenure: 1.5yrs
  • Chris Brandt (50yo)

    Chief Marketing Officer

    • Tenure: 1.5yrs
    • Compensation: US$5.19m
  • Scott Boatwright (46yo)

    Chief Restaurant Officer

    • Tenure: 2.4yrs
    • Compensation: US$5.71m
  • Laurie Schalow (51yo)

    Chief Corporate Reputation Officer

    • Tenure: 0.6yrs

Board Members

  • Paul Cappuccio (57yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$234.56k
  • Pat Fili-Krushel (65yo)

    Independent Director

    • Tenure: 0.6yrs
  • Neil Flanzraich (76yo)

    Lead Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$286.56k
  • Matthew Paull (68yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$214.06k
  • Steve Ells (54yo)

    Founder & Executive Chairman

    • Tenure: 14.8yrs
    • Compensation: US$7.96m
  • Al Baldocchi (65yo)

    Independent Director

    • Tenure: 22.8yrs
    • Compensation: US$237.06k
  • Ali Namvar (49yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$220.06k
  • Scott Maw (52yo)

    Director

    • Tenure: 0.6yrs
  • Brian Niccol (45yo)

    CEO & Director

    • Tenure: 1.6yrs
    • Compensation: US$33.73m
  • Robin Hickenlooper (40yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$217.06k

Company Information

Chipotle Mexican Grill, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chipotle Mexican Grill, Inc.
  • Ticker: C9F
  • Exchange: DB
  • Founded: 1993
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$23.328b
  • Listing Market Cap: US$20.942b
  • Shares outstanding: 27.72m
  • Website: https://www.chipotle.com

Number of Employees


Location

  • Chipotle Mexican Grill, Inc.
  • 610 Newport Center Drive
  • Suite 1300
  • Newport Beach
  • California
  • 92660
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CMGNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 2006
C9FDB (Deutsche Boerse AG)YesCommon StockDEEURJan 2006
CMG *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 2006
0HXWLSE (London Stock Exchange)YesCommon StockGBUSDJan 2006
CHMGWBAG (Wiener Boerse AG)YesCommon StockATEURJan 2006

Biography

Chipotle Mexican Grill, Inc., together with its subsidiaries, operates Chipotle Mexican Grill restaurants. As of December 31, 2018, it operated 2,491 restaurants, including 2,452 Chipotle restaurants in th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 20:49
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.