Why is Chipotle stock so high? (2024)

Why is Chipotle stock so high?

More locations and higher sales per location have led to explosive growth for Chipotle's bottom line too. This is how Chipotle has pushed its stock from $22 at IPO to over $2,900 as of this writing, and this is how it will continue to create shareholder value going forward.

Is Chipotle stock a good buy now?

Chipotle has 3.34% upside potential, based on the analysts' average price target. Chipotle has a conensus rating of Moderate Buy which is based on 19 buy ratings, 9 hold ratings and 0 sell ratings. The average price target for Chipotle is $2,999.89.

Is CMG a good long term investment?

Chipotle Mexican Grill (CMG) has given long-term investors plenty to cheer about. Over the past 15 years, Chipotle stock has averaged an annual return of 28.9%, easily outpacing the S&P 500's 15.7% gain.

Why is Chipotle stock in an uptrend?

Strong business momentum

Investors are also encouraged by the company's proven pricing power. Chipotle has raised its menu prices numerous times over the past couple years, yet consumers still appear to find lots of value in the burritos and bowls. Net income soared 26% to a total of $283 million.

Is Chipotle stock going to split?

CHIPOTLE BOARD OF DIRECTORS APPROVES 50-FOR-1 STOCK SPLIT - Mar 19, 2024.

Why Chipotle stock is a good buy?

Chipotle is generating record revenue and profit

Comparable sales increased 7.9% for the year, while restaurant-level operating margin jumped from 23.9% to 26.2%. Pandemic-era initiatives continue to pay off for the company as well. Of the 271 new restaurants opened in 2023, 88% featured a Chipotlane drive-through.

Is it smart to invest in Chipotle?

Chipotle Mexican Grill, Inc.

may be overvalued. Its Value Score of F indicates it would be a bad pick for value investors. The financial health and growth prospects of CMG, demonstrate its potential to underperform the market. It currently has a Growth Score of B.

Is Chipotle a buy sell or hold?

Chipotle Mexican Grill has received a consensus rating of Moderate Buy. The company's average rating score is 2.64, and is based on 18 buy ratings, 10 hold ratings, and no sell ratings.

Who owns the most CMG stock?

According to the latest TipRanks data, approximately 24.15% of Chipotle (CMG) stock is held by retail investors. Who owns the most shares of Chipotle (CMG)? Vanguard owns the most shares of Chipotle (CMG).

What investment does Warren Buffett recommend?

“If you like spending six to eight hours per week working on investments, do it. If you don't, then dollar-cost average into index funds.” Buffett has long advised most investors to use index funds to invest in the market, rather than trying to pick individual stocks.

Why is Chipotle so profitable?

One of the keys to Chipotle's success is its small menu. A smaller menu has three benefits. First, since Chipotle only stocks fresh ingredients, there is always a chance of food spoilage. The small menu reduces the number of ingredients needed on-hand, thus reducing the likelihood of waste.

Why did McDonald's stop investing in Chipotle?

In October 2006, McDonald's fully divested from Chipotle. This was part of a larger initiative for McDonald's to divest all of its non-core business restaurants — Chipotle, Donatos Pizza, and Boston Market — so that it could focus on the main McDonald's chain.

Is Chipotle doing well?

Total revenue increased 15.4% to $2.5 billion. Comparable restaurant sales increased 8.4% Operating margin was 14.4%, an increase from 13.6% Restaurant level operating margin was 25.4%¹, an increase of 140 basis points.

Has Chipotle ever paid a dividend?

Historical dividend payout and yield for Chipotle Mexican Grill (CMG) since 1971. The current TTM dividend payout for Chipotle Mexican Grill (CMG) as of April 19, 2024 is $0.00. The current dividend yield for Chipotle Mexican Grill as of April 19, 2024 is 0.00%.

Do Chipotle employees get stock?

If you've been at Chipotle for a year or more, you can buy full or partial shares of Chipotle stock through payroll deductions, initially at a discounted price.

Why doesn t Chipotle pay a dividend?

However, unlike other restaurant chains, Chipotle doesn't pay a dividend because it prefers to pour profits back into the business. This bold strategy can amplify gains, but it also puts pressure on the investment thesis when there's a slowdown.

Why is Chipotle stock split?

CFO Jack Hartung said the stock split "will make our stock more accessible to employees as well as a broader range of investors," and noted that the stock is at an all-time high due to record revenue, profits, and growth.

Why did Chipotle stock jump?

Chipotle Mexican Grill shares were sharply higher in premarket trading Wednesday after the restaurant chain operator announced a 50-for-1 stock split. The company said it will seek shareholder approval for the split at its annual meeting on June 6.

Is Chipotle a safe stock to invest in?

Chipotle reported revenue and earnings per share growth of 14.3% and 38.4%, respectively, in 2023. These two headline figures are significantly higher than they were just five years ago. Chipotle's results maintain strong financial performance despite ongoing macroeconomic uncertainty.

Did McDonald's invest in Chipotle?

The burger chain made an investment in Chipotle in 1998 that helped it grow from 14 locations to nearly 500 within seven years. By 2005, McDonald's had a 90% stake in Chipotle's business. But one year later, McDonald's divested its stake and parted ways with the fledgling burrito chain.

Who is the major investor in Chipotle?

Chipotle Mexican Grill Inc. was founded by Steve Ells in 1993. As of 2024, Brian Niccol is the company's Chairman of the Board of Directors and Chief Executive Officer. The top shareholders of Chipotle include Montgomery Moran, Steve Ells, Vanguard Group, and BlackRock.

What is Chipotle investing in?

With its additional $50 million commitment, Chipotle's Cultivate Next venture fund will continue to pursue new investments in supply chain, agriculture, restaurant innovation, automation, and other areas that support the company's mission to Cultivate a Better World.

Will Chipotle expand?

Chipotle is opening up around 300 new stores—or more—in 2024, necessitating a major employment outreach, in cities and suburbs, country-wide.

What is the volatility of Chipotle stock?

CMG implied volatility (IV) is 35.2, which is in the 91% percentile rank. This means that 91% of the time the IV was lower in the last year than the current level. The current IV (35.2) is 13.2% above its 20 day moving average (31.1) indicating implied volatility is trending higher.

Are McDonald's and Chipotle owned by the same company?

In 2006, McDonald divested its stake in Chipotle, allowing the company to operate fully as an independent entity. This move allowed Chipotle to pursue its own growth trajectory and stay true to its core values.