Chipotle Mexican Grill Inc (CMG, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth prospects. With its shares currently priced at $58.25, Chipotle Mexican Grill Inc has experienced a daily gain of 1.02%, despite a three-month change of -13.01%. A detailed analysis, supported by the GF Score, indicates that Chipotle Mexican Grill Inc is poised for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks across five key valuation aspects. This system has proven to correlate strongly with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Chipotle Mexican Grill Inc boasts a GF Score of 94, highlighting its strong potential in the market.
- Financial strength rank: 6/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 10/10
Understanding Chipotle Mexican Grill Inc's Business
Chipotle Mexican Grill Inc, with a market cap of $79.77 billion and sales of $10.66 billion, is the largest fast-casual chain in the United States. The company, known for its burritos, tacos, and quesadillas, prides itself on competitive pricing, high-quality food sourcing, and quick service. As of the end of 2023, Chipotle operates nearly 3,440 stores primarily in the U.S., with a smaller presence in Canada, the UK, France, and Germany. All revenue is generated from restaurant sales and delivery fees.
Financial Strength Breakdown
Chipotle Mexican Grill Inc's financial resilience is evident in its robust balance sheet and strategic debt management. With an Altman Z-Score of 11.35, the company demonstrates a strong buffer against financial distress. Additionally, its Debt-to-Revenue ratio of 0.4 further solidifies its financial health, underscoring prudent capital management.
Profitability Rank Breakdown
Chipotle Mexican Grill Inc stands out for its profitability, with an impressive Operating Margin increase to 16.54% in 2023 from 8.56% in 2019. The company's Gross Margin has also consistently improved, reaching 26.20% in 2023. These trends highlight Chipotle's efficiency in converting revenue into profit, supported by a strong Piotroski F-Score.
Growth Rank Breakdown
Chipotle Mexican Grill Inc's commitment to growth is evident in its Growth rank of 10/10. The company's 3-Year Revenue Growth Rate of 19.2% surpasses 70.33% of its industry peers. Additionally, its EBITDA has seen significant increases, with a three-year growth rate of 51.5%, emphasizing its capability to expand and scale effectively.
Conclusion
Considering Chipotle Mexican Grill Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score distinctly highlights the company's strong position for potential market outperformance. For investors seeking similar opportunities, explore more companies with high GF Scores through our exclusive GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
