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CMG

Chipotle Mexican GrillNYSE:CMG Stock Report

Market Cap

US$50.5b

7D

-2.1%

1Y

33.8%

Updated

22 Oct, 2021

Data

Company Financials +
CMG fundamental analysis
Snowflake Score
Valuation0/6
Future Growth5/6
Past Performance6/6
Financial Health5/6
Dividends0/6

CMG Overview

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

Chipotle Mexican Grill Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Chipotle Mexican Grill
Historical stock prices
Current Share PriceUS$1,792.21
52 Week HighUS$1,172.29
52 Week LowUS$1,958.55
Beta1.35
1 Month Change-7.38%
3 Month Change-2.11%
1 Year Change33.84%
3 Year Change308.83%
5 Year Change384.28%
Change since IPO3,973.21%

Recent News & Updates

Oct 19
Returns On Capital Signal Tricky Times Ahead For Chipotle Mexican Grill (NYSE:CMG)

Returns On Capital Signal Tricky Times Ahead For Chipotle Mexican Grill (NYSE:CMG)

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Oct 18

Chipotle: Strong Growth Prospects, But Investors Should Wait For A Better Entry Level

Chipotle’s impressive in-restaurant sales recovery and continued strength in digital sales helped it in exceeding analysts’ second-quarter estimates. Given the momentum, analysts expect robust earnings growth for 2021. The company’s efficient execution and continued expansion of its footprint are expected to boost its earnings over the long term. While I am optimistic about Chipotle’s growth potential, I feel investors should wait for a pullback rather than buying the stock at a steep valuation.

Sep 28
Does Chipotle Mexican Grill (NYSE:CMG) Deserve A Spot On Your Watchlist?

Does Chipotle Mexican Grill (NYSE:CMG) Deserve A Spot On Your Watchlist?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Sep 17

Chipotle Looks Impressive, It Deserves Your Watchlist

Share to Chipotle are up 44% YTD. Estimated EPS to reach $41.70 by the end of 2023. The company trades at a P/E ratio of 74, much higher than that of Domino's and McDonald's. Some analysts have started expressing concern about the stock getting too hot.

Shareholder Returns

CMGUS HospitalityUS Market
7D-2.1%-1.4%2.6%
1Y33.8%31.8%31.1%

Return vs Industry: CMG exceeded the US Hospitality industry which returned 31.8% over the past year.

Return vs Market: CMG exceeded the US Market which returned 31.1% over the past year.

Price Volatility

Is CMG's price volatile compared to industry and market?
CMG volatility
CMG Beta1.35
Industry Beta1.67
Market Beta1

Stable Share Price: CMG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: CMG's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199388,000Brian Niccolhttps://www.chipotle.com

Chipotle Mexican Grill, Inc., together with its subsidiaries, owns and operates Chipotle Mexican Grill restaurants. As of December 31, 2020, it owned and operated 2,724 Chipotle restaurants in the United States, 40 international Chipotle restaurants, and 4 non-Chipotle restaurants. The company was founded in 1993 and is headquartered in Newport Beach, California.

Chipotle Mexican Grill Fundamentals Summary

How do Chipotle Mexican Grill's earnings and revenue compare to its market cap?
CMG fundamental statistics
Market CapUS$50.46b
Earnings (TTM)US$710.47m
Revenue (TTM)US$7.19b

71.0x

P/E Ratio

7.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CMG income statement (TTM)
RevenueUS$7.19b
Cost of RevenueUS$4.40b
Gross ProfitUS$2.79b
ExpensesUS$2.08b
EarningsUS$710.47m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)25.23
Gross Margin38.77%
Net Profit Margin9.88%
Debt/Equity Ratio0%

How did CMG perform over the long term?

See historical performance and comparison

Valuation

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

71.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CMG ($1792.21) is trading above our estimate of fair value ($1267.78)

Significantly Below Fair Value: CMG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CMG is poor value based on its PE Ratio (71x) compared to the US Hospitality industry average (26.9x).

PE vs Market: CMG is poor value based on its PE Ratio (71x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: CMG is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: CMG is overvalued based on its PB Ratio (21.8x) compared to the US Hospitality industry average (3.8x).


Future Growth

How is Chipotle Mexican Grill forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

24.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMG's forecast earnings growth (24% per year) is above the savings rate (2%).

Earnings vs Market: CMG's earnings (24% per year) are forecast to grow faster than the US market (15.1% per year).

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

Revenue vs Market: CMG's revenue (12.3% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: CMG's revenue (12.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CMG's Return on Equity is forecast to be very high in 3 years time (45.2%).


Past Performance

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

36.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CMG has high quality earnings.

Growing Profit Margin: CMG's current net profit margins (9.9%) are higher than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: CMG's earnings have grown significantly by 36.1% per year over the past 5 years.

Accelerating Growth: CMG's earnings growth over the past year (199.5%) exceeds its 5-year average (36.1% per year).

Earnings vs Industry: CMG earnings growth over the past year (199.5%) exceeded the Hospitality industry 81.9%.


Return on Equity

High ROE: CMG's Return on Equity (30.7%) is considered high.


Financial Health

How is Chipotle Mexican Grill's financial position?


Financial Position Analysis

Short Term Liabilities: CMG's short term assets ($1.5B) exceed its short term liabilities ($851.0M).

Long Term Liabilities: CMG's short term assets ($1.5B) do not cover its long term liabilities ($3.5B).


Debt to Equity History and Analysis

Debt Level: CMG is debt free.

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

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

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


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if CMG'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 CMG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Brian Niccol (47 yo)

3.58yrs

Tenure

US$38,035,868

Compensation

Mr. Brian R. Niccol serves as Independent Director at KB Home since July 8, 2021. He has been Chief Executive Officer and Director at Chipotle Mexican Grill, Inc., since March 05, 2018 and has been its Cha...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD38.04M) is above average for companies of similar size in the US market ($USD11.15M).

Compensation vs Earnings: Brian's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: CMG's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: CMG's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Chipotle Mexican Grill, Inc.
  • Ticker: CMG
  • Exchange: NYSE
  • Founded: 1993
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$50.460b
  • Shares outstanding: 28.16m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 22:52
End of Day Share Price2021/10/22 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.