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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt No Debt
CMG's Cash to Debt is ranked higher than
89% of the 385 Companies
in the Global Restaurants industry.

( Industry Median: 0.50 vs. CMG: No Debt )
CMG' s 10-Year Cash to Debt Range
Min: 0.42   Max: No Debt
Current: No Debt

Equity to Asset 0.78
CMG's Equity to Asset is ranked higher than
92% of the 381 Companies
in the Global Restaurants industry.

( Industry Median: 0.47 vs. CMG: 0.78 )
CMG' s 10-Year Equity to Asset Range
Min: 0.72   Max: 0.8
Current: 0.78

0.72
0.8
Interest Coverage No Debt
CMG's Interest Coverage is ranked higher than
91% of the 304 Companies
in the Global Restaurants industry.

( Industry Median: 18.94 vs. CMG: No Debt )
CMG' s 10-Year Interest Coverage Range
Min: 31.97   Max: 9999.99
Current: No Debt

31.97
9999.99
F-Score: 7
Z-Score: 26.60
M-Score: -2.82
WACC vs ROIC
7.92%
41.14%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 9/10

vs
industry
vs
history
Operating margin (%) 16.79
CMG's Operating margin (%) is ranked higher than
93% of the 388 Companies
in the Global Restaurants industry.

( Industry Median: 6.46 vs. CMG: 16.79 )
CMG' s 10-Year Operating margin (%) Range
Min: -18.79   Max: 16.69
Current: 16.79

-18.79
16.69
Net-margin (%) 10.40
CMG's Net-margin (%) is ranked higher than
93% of the 388 Companies
in the Global Restaurants industry.

( Industry Median: 4.02 vs. CMG: 10.40 )
CMG' s 10-Year Net-margin (%) Range
Min: -18.24   Max: 10.19
Current: 10.4

-18.24
10.19
ROE (%) 24.34
CMG's ROE (%) is ranked higher than
91% of the 380 Companies
in the Global Restaurants industry.

( Industry Median: 10.30 vs. CMG: 24.34 )
CMG' s 10-Year ROE (%) Range
Min: -12.13   Max: 24.28
Current: 24.34

-12.13
24.28
ROA (%) 18.71
CMG's ROA (%) is ranked higher than
98% of the 389 Companies
in the Global Restaurants industry.

( Industry Median: 4.63 vs. CMG: 18.71 )
CMG' s 10-Year ROA (%) Range
Min: -10.15   Max: 17.97
Current: 18.71

-10.15
17.97
ROC (Joel Greenblatt) (%) 65.90
CMG's ROC (Joel Greenblatt) (%) is ranked higher than
93% of the 386 Companies
in the Global Restaurants industry.

( Industry Median: 17.65 vs. CMG: 65.90 )
CMG' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 4.21   Max: 58.22
Current: 65.9

4.21
58.22
Revenue Growth (3Y)(%) 21.10
CMG's Revenue Growth (3Y)(%) is ranked higher than
97% of the 319 Companies
in the Global Restaurants industry.

( Industry Median: 3.60 vs. CMG: 21.10 )
CMG' s 10-Year Revenue Growth (3Y)(%) Range
Min: 19.1   Max: 32.3
Current: 21.1

19.1
32.3
EBITDA Growth (3Y)(%) 21.20
CMG's EBITDA Growth (3Y)(%) is ranked higher than
93% of the 280 Companies
in the Global Restaurants industry.

( Industry Median: 4.90 vs. CMG: 21.20 )
CMG' s 10-Year EBITDA Growth (3Y)(%) Range
Min: 21.2   Max: 112.6
Current: 21.2

21.2
112.6
EPS Growth (3Y)(%) 22.90
CMG's EPS Growth (3Y)(%) is ranked higher than
92% of the 233 Companies
in the Global Restaurants industry.

( Industry Median: 5.70 vs. CMG: 22.90 )
CMG' s 10-Year EPS Growth (3Y)(%) Range
Min: 18.2   Max: 107
Current: 22.9

18.2
107
» CMG's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2014

CMG Guru Trades in Q1 2014

Caxton Associates 17,500 sh (New)
RS Investment Management 8,627 sh (New)
Steven Cohen 80,048 sh (+5.26%)
Frank Sands 2,340,997 sh (+0.73%)
Caxton Associates 10,000 sh (unchged)
Bill Frels Sold Out
Jim Simons 169,300 sh (-37.57%)
Pioneer Investments 11,237 sh (-77.05%)
Jeremy Grantham 1,330 sh (-78.65%)
» More
Q2 2014

CMG Guru Trades in Q2 2014

Louis Moore Bacon 20,000 sh (New)
Frank Sands 2,345,502 sh (+0.19%)
Steven Cohen 19,700 sh (unchged)
Caxton Associates Sold Out
Pioneer Investments 10,721 sh (-4.59%)
RS Investment Management 7,114 sh (-17.54%)
Jim Simons 113,800 sh (-32.78%)
Jeremy Grantham 530 sh (-60.15%)
» More
Q3 2014

CMG Guru Trades in Q3 2014

Caxton Associates 11,500 sh (New)
Jim Simons 213,600 sh (+87.7%)
Pioneer Investments 10,412 sh (unchged)
Louis Moore Bacon Sold Out
Jeremy Grantham Sold Out
RS Investment Management 6,271 sh (-11.85%)
Frank Sands 1,973,343 sh (-15.87%)
Steven Cohen 7,900 sh (-59.9%)
» More
Q4 2014

CMG Guru Trades in Q4 2014

Jeremy Grantham 12,030 sh (New)
Jim Simons 307,200 sh (+43.82%)
Pioneer Investments 12,379 sh (+18.89%)
Steven Cohen Sold Out
Caxton Associates Sold Out
Frank Sands 1,958,598 sh (-0.75%)
RS Investment Management 6,114 sh (-2.5%)
» More
» Details

Insider Trades

Latest Guru Trades with CMG

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Frank Sands 2014-09-30 Reduce -15.87%0.56%$581.65 - $684.83 $ 664.161%1973343
Frank Sands 2013-12-31 Reduce -16.38%0.54%$426.5 - $546.97 $ 664.1630%2324080
Frank Sands 2013-03-31 Add 22.38%0.6%$280.94 - $329.24 $ 664.16113%2822469
Frank Sands 2012-12-31 New Buy2.7%$236.24 - $302.96 $ 664.16143%2306224
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Chipotle Mexican Grill Inc

David Einhorn Comments on Chipotle Mexican Grill - Oct 16, 2013

But even in conventionally valued stocks where the fundamentals have largely gone our way, it has been hard to make money on shorts. In many cases we’ve lost money. Let’s consider Chipotle Mexican Grill (CMG). In recent years through the end of 2011, CMG and other upstarts in the fast-casual restaurant segment achieved substantial growth by offering consumers a higher quality menu than is typically found in fast-food chains. In contrast, Taco Bell (the largest Mexican fast-food chain) had lackluster and often negative growth. In early 2012, Taco Bell expanded its offerings to include new gourmet-style dishes as part of its Cantina Bell menu and introduced Doritos Locos Tacos. We believed that these innovations would enable Taco Bell to recapture market share from CMG. This is exactly what happened:

Notably, CMG’s comparable store sales benefit by about 2.5% per year because the company has a large number of new stores entering the comp base each year, which naturally ramp their volumes. Since Taco Bell has a mature store base, its comparable store sales don’t share that tailwind.

When we presented our thesis that Taco Bell would gain share, we received widespread ridicule from CMG’s customers in the investment community. But CMG also serves a younger demographic who are likely to be more sensitive to food prices than stock prices. It seems like Taco Bell has, in fact, gained share from this group.We surmise that this has led CMG to reconsider its strategy. In January 2013, the company strongly hinted that it would raise prices this year. Historically, CMG had been able to raise prices with impunity. However, with comparable store sales running in the low single digits, management decided to postpone the increase until 2014, when they plan to raise prices in conjunction with announcing that all their food is GMO-free. We believe that competition, particularly for college aged patrons, has reduced CMG’s ability to raise prices without losing customers and, based on its actions, it appears management agrees.

The result of all of this is that CMG is now expected to earn less in both 2013 and 2014 than consensus believed prior to Taco Bell’s innovations. Unfortunately for us, the market has rewarded CMG with an expanded P/E multiple, which is quite surprising in the face of falling comparable store sales, slowing and disappointing earnings growth, and a loss of pricing power.Such is the nature of the current market environment. Muy Loco!

From David Einhorn’s Greenlight Capital third quarter 2013 letter.


Check out David Einhorn latest stock trades

Ratios

vs
industry
vs
history
P/E(ttm) 51.80
CMG's P/E(ttm) is ranked higher than
67% of the 410 Companies
in the Global Restaurants industry.

( Industry Median: 37.50 vs. CMG: 51.80 )
CMG' s 10-Year P/E(ttm) Range
Min: 16.55   Max: 103.55
Current: 51.8

16.55
103.55
Forward P/E 33.11
CMG's Forward P/E is ranked higher than
76% of the 410 Companies
in the Global Restaurants industry.

( Industry Median: 40.32 vs. CMG: 33.11 )
N/A
PE(NRI) 52.10
CMG's PE(NRI) is ranked higher than
66% of the 410 Companies
in the Global Restaurants industry.

( Industry Median: 38.60 vs. CMG: 52.10 )
CMG' s 10-Year PE(NRI) Range
Min: 16.58   Max: 103.72
Current: 52.1

16.58
103.72
P/B 10.80
CMG's P/B is ranked lower than
52% of the 410 Companies
in the Global Restaurants industry.

( Industry Median: 3.91 vs. CMG: 10.80 )
CMG' s 10-Year P/B Range
Min: 2.05   Max: 12.01
Current: 10.8

2.05
12.01
P/S 5.40
CMG's P/S is ranked lower than
54% of the 410 Companies
in the Global Restaurants industry.

( Industry Median: 1.46 vs. CMG: 5.40 )
CMG' s 10-Year P/S Range
Min: 1.03   Max: 5.88
Current: 5.4

1.03
5.88
PFCF 44.90
CMG's PFCF is ranked higher than
73% of the 410 Companies
in the Global Restaurants industry.

( Industry Median: 62.33 vs. CMG: 44.90 )
CMG' s 10-Year PFCF Range
Min: 18.93   Max: 1238
Current: 44.9

18.93
1238
POCF 30.51
CMG's POCF is ranked higher than
53% of the 410 Companies
in the Global Restaurants industry.

( Industry Median: 15.18 vs. CMG: 30.51 )
CMG' s 10-Year POCF Range
Min: 6.81   Max: 37.64
Current: 30.51

6.81
37.64
EV-to-EBIT 32.73
CMG's EV-to-EBIT is ranked higher than
66% of the 410 Companies
in the Global Restaurants industry.

( Industry Median: 22.97 vs. CMG: 32.73 )
CMG' s 10-Year EV-to-EBIT Range
Min: 8.8   Max: 61.2
Current: 32.73

8.8
61.2
PEG 1.81
CMG's PEG is ranked higher than
93% of the 410 Companies
in the Global Restaurants industry.

( Industry Median: 0.00 vs. CMG: 1.81 )
CMG' s 10-Year PEG Range
Min: 0.88   Max: 2.48
Current: 1.81

0.88
2.48
Shiller P/E 82.30
CMG's Shiller P/E is ranked higher than
77% of the 410 Companies
in the Global Restaurants industry.

( Industry Median: 337.58 vs. CMG: 82.30 )
CMG' s 10-Year Shiller P/E Range
Min: 49.8   Max: 105.87
Current: 82.3

49.8
105.87
Current Ratio 3.30
CMG's Current Ratio is ranked higher than
95% of the 387 Companies
in the Global Restaurants industry.

( Industry Median: 1.08 vs. CMG: 3.30 )
CMG' s 10-Year Current Ratio Range
Min: 0.38   Max: 4.43
Current: 3.3

0.38
4.43
Quick Ratio 3.24
CMG's Quick Ratio is ranked higher than
95% of the 387 Companies
in the Global Restaurants industry.

( Industry Median: 0.93 vs. CMG: 3.24 )
CMG' s 10-Year Quick Ratio Range
Min: 0.31   Max: 4.35
Current: 3.24

0.31
4.35
Days Inventory 1.86
CMG's Days Inventory is ranked higher than
99% of the 410 Companies
in the Global Restaurants industry.

( Industry Median: 14.18 vs. CMG: 1.86 )
CMG' s 10-Year Days Inventory Range
Min: 1.59   Max: 1.88
Current: 1.86

1.59
1.88
Days Sales Outstanding 1.78
CMG's Days Sales Outstanding is ranked higher than
89% of the 410 Companies
in the Global Restaurants industry.

( Industry Median: 15.11 vs. CMG: 1.78 )
CMG' s 10-Year Days Sales Outstanding Range
Min: 1   Max: 2.73
Current: 1.78

1
2.73

Valuation & Return

vs
industry
vs
history
Price/Net Cash 83.60
CMG's Price/Net Cash is ranked higher than
91% of the 410 Companies
in the Global Restaurants industry.

( Industry Median: 0.00 vs. CMG: 83.60 )
CMG' s 10-Year Price/Net Cash Range
Min: 42.09   Max: 9705
Current: 83.6

42.09
9705
Price/Net Current Asset Value 76.80
CMG's Price/Net Current Asset Value is ranked higher than
90% of the 410 Companies
in the Global Restaurants industry.

( Industry Median: 0.00 vs. CMG: 76.80 )
CMG' s 10-Year Price/Net Current Asset Value Range
Min: 38.21   Max: 539.17
Current: 76.8

38.21
539.17
Price/Tangible Book 11.00
CMG's Price/Tangible Book is ranked higher than
57% of the 410 Companies
in the Global Restaurants industry.

( Industry Median: 6.00 vs. CMG: 11.00 )
CMG' s 10-Year Price/Tangible Book Range
Min: 3.32   Max: 10.9
Current: 11

3.32
10.9
Price/DCF (Projected) 4.00
CMG's Price/DCF (Projected) is ranked higher than
74% of the 410 Companies
in the Global Restaurants industry.

( Industry Median: 5.82 vs. CMG: 4.00 )
CMG' s 10-Year Price/DCF (Projected) Range
Min: 3.01   Max: 7.05
Current: 4

3.01
7.05
Price/Median PS Value 1.50
CMG's Price/Median PS Value is ranked higher than
68% of the 410 Companies
in the Global Restaurants industry.

( Industry Median: 1.44 vs. CMG: 1.50 )
CMG' s 10-Year Price/Median PS Value Range
Min: 0.41   Max: 1.56
Current: 1.5

0.41
1.56
Price/Peter Lynch Fair Value 2.20
CMG's Price/Peter Lynch Fair Value is ranked higher than
94% of the 410 Companies
in the Global Restaurants industry.

( Industry Median: 0.00 vs. CMG: 2.20 )
CMG' s 10-Year Price/Peter Lynch Fair Value Range
Min: 1.36   Max: 2.3
Current: 2.2

1.36
2.3
Price/Graham Number 5.00
CMG's Price/Graham Number is ranked higher than
70% of the 410 Companies
in the Global Restaurants industry.

( Industry Median: 5.94 vs. CMG: 5.00 )
CMG' s 10-Year Price/Graham Number Range
Min: 1.76   Max: 5.42
Current: 5

1.76
5.42
Earnings Yield (Greenblatt) 3.10
CMG's Earnings Yield (Greenblatt) is ranked higher than
64% of the 386 Companies
in the Global Restaurants industry.

( Industry Median: 4.50 vs. CMG: 3.10 )
CMG' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.6   Max: 11.4
Current: 3.1

1.6
11.4
Forward Rate of Return (Yacktman) 24.73
CMG's Forward Rate of Return (Yacktman) is ranked higher than
92% of the 252 Companies
in the Global Restaurants industry.

( Industry Median: 10.14 vs. CMG: 24.73 )
CMG' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 24.6   Max: 39.7
Current: 24.73

24.6
39.7

Business Description

Industry: Restaurants » Restaurants
Compare:BH, MCD, DIN, SBUX, IRG » details
Traded in other countries:C9F.Germany, CMG.Mexico,
Chipotle Mexican Grill, Inc. is a Delaware corporation. The Company operate Chipotle Mexican Grill restaurants, which serve a focused menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads, made using fresh ingredients. The Company operates 1,572 Chipotle restaurants throughout the United States, as well as seven in Canada, six in England, two in France, and one in Germany. Additionally, its restaurants include six ShopHouse Southeast Asian Kitchen restaurants, serving Asian-inspired cuisine. Its restaurants accept orders by fax, online or through an iPhone or Android ordering application in order to provide a more convenient experience by allowing customers to avoid standing in line. They also provide a variety of extras such as guacamole, salsas and tortilla chips seasoned with fresh lime juice and kosher salt. In addition to sodas, fruit drinks and organic milk, most of their restaurants also offer a selection of beer and margaritas. There food is prepared from scratch, with the majority prepared in our restaurants while some is prepared with the same fresh ingredients in larger batches in commissaries. The fast-casual, quick-service and casual dining segments of the restaurant industry are highly competitive with respect to, among other things, taste, price, food quality and presentation, service, location and the ambience and condition of each restaurant. They are subject to various federal and state laws governing their relationship with and other matters pertaining to our employees, including wage and hour laws, requirements to provide meal and rest periods or other benefits, family leave mandates, requirements regarding working conditions and accommodations to certain employees, citizenship or work authorization and related requirements, insurance and workers' compensation rules and anti-discrimination laws.
» More Articles for CMG

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