| Stock (Symbol) | Stock Price | |
Chipotle (CMG) |
$321 |
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| Data is as of | Expected to Report | Sector |
November 16, 2011 |
February 8 |
Retail & Restaurant |
| Sharek’s Take | ||
 Chipotle kicked it up a notch last quarter. Profit growth jumped to 25% from 12% two quarters ago due to the combination of 11% same store sales growth and a 5% price increase. Food costs continued to climb, but things are going so well otherwise that it wasn’t a big deal.CMG is selling for 37 times earnings, which is at the high end of reasonable. Although everything is great, it will be hard to get that P/E higher. Annual profit estimates stayed flat from a quarter, so although this stock is timely now, its not undervalued. |
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| One-Year Chart | ||
 The one-year chart shows CMG is trending higher, in healthy way. Profit growth of 22% and 30% is expected the next two quarters, the company could beat estimates and cull out an average of 30% growth.CMG’s P/E is 37, down from 46 in my last research report because I’m looking ahead to 2012 numbers. |
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| Earnings Table | ||
 Profits kicked back up last quarter to 25%. Sales increased 24% compared to 22% 2QtrsAgo. Same-store sales growth was 11% LastQtr, 10% 2QtrsAgo, 12% 3QtrsAgo.CMG beat by 5 cents which was great because the company missed by 3 cents 2QtrsAgo because of high food costs. Annual Profit Estimates stayed flat. Nothing to report here.Quarterly estimates look solid for the next year. Profit growth is expected to clock in between 22% and 34%. |
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| Fair Value | ||
 CMG is selling around its Fair Value of 35 times earnings. The stock has a tendency to get a P/E in the mid-40s though. |
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| Ten-Year Chart | ||
 Chipotle is extended in the ten-year chart. Profit growth is excepted to decelerate to 21% this year. Longer term the company’s Asian concept will hopefully be the next catalyst for growth opportunity. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
18 of 20 |
I’m at a crossroads with the stocks in my portfolios. Some stocks are priced to perfection but also going higher. Others are undervalued but going nowhere. Chipotle is where it should be yet going higher. Since I’m a long term investor, I have to put CMG down low in my Power Rankings. CMG is ranked 18th in the 20 stock Growth Portfolio Power Rankings. CMG is not in the Aggressive Growth Portfolio. I love this company, the stock isn’t a bargain. |
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Aggressive Growth Portfolio
N/A |
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