CMG - Embedded Expectations Analysis - 2020 02 27
ï€ Chipotle Mexican Grill, Inc. (CMG:USA) currently trades well above historical averages relative to earnings with a 48.7x Uniform P/E, implying bullish expectations for the firm. However, management may be concerned about their new menu items, store openings, and their rewards programï€ However, management may be exaggerating the potential of Chipotlane, the success of their Carne Asada and other new menu item trials, and the quality of their hospitality and throughput. Moreover, they may lack confidence in their ability to sustain improvements in sales leverage and continue new store openings. Furthermore, management may be downplaying concerns about margins, seasonality, and avocado prices, and they may be exaggerating their commitment to their Food with Integrity principles. Finally, they may be overstating their ability to leverage data from their rewards program to drive sales, and they appear concerned about the sustainability of their industry-leading employee benefits program
Chipotle Mexican Grill together with its subsidiaries operates Chipotle Mexican Grill restaurants, which feature a menu of burritos, burrito bowls (a burrito without the tortilla), tacos, and salads. The company operates Chipotle restaurants throughout the United States, international Chipotle restaurants, and non-Chipotle restaurants. The company uses various herbs, spices and seasonings to prepare its meats and vegetables. The company also serves tortilla chips that seasoned with lime juice and salt, with sides of hand mashed guacamole, salsas, or queso. In addition to sodas, fruit and tea drinks, and organic milk, most of the company's restaurants also provide a selection of beer and margaritas.
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