Skip to Content

Chipotle Mexican Grill Inc Class A CMG

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Stewardship

PREMIUM

Chipotle's Well Positioned Post-Pandemic, but Current Valuation Assumes Unrealistic Long-Term Growth

R.J. Hottovy, CFA Sector Strategist

Analyst Note

| R.J. Hottovy, CFA |

Narrow-moat Chipotle's third-quarter update showcased the steps the firm has taken to navigate COVID-19-related disruptions and position itself for postpandemic market share gains. Comps increased 8.3%--well ahead of the low-single-digit growth from most nonpizza quick-service and fast casual chains--on the strength of digital/delivery sales, which increased 202% and represented 48.8% of total sales for the quarter (even more impressive when factoring in delivery price increases implemented during the quarter). While comps have retreated to mid-single-digit growth in September/October, part of the deceleration can be chalked up to lapping last year's successful carne asada launch. 

Read Full Analysis

Company Profile

Business Description

With $5.6 billion in systemwide sales during 2019, Chipotle Mexican Grill is the largest player in the $16 billion domestic fast-casual Mexican restaurant category. Its menu includes burritos, bowls, tacos, and salads, which are made from higher-quality ingredients than those typically found at quick-service restaurants. As of September, the firm operated more than 2,700 company-owned restaurants in the United States, Canada, the United Kingdom, France, and Germany.

Contact
610 Newport Center Drive, Suite 1300
Newport Beach, CA, 92660
T +1 303 595-4000
Sector Consumer Cyclical
Industry Restaurants
Most Recent Earnings Jun 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 83,000

Related