Chipotle Mexican Grill Inc (CMG, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $2,310.44, Chipotle Mexican Grill Inc has witnessed a daily gain of 0%, marked against a three-month change of 26.29%. A thorough analysis, underlined by the GF Score, suggests that Chipotle Mexican Grill Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 6/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 9/10
Considering these components, GuruFocus assigned Chipotle Mexican Grill Inc a GF Score of 94 out of 100, which signals the highest outperformance potential.
Understanding Chipotle Mexican Grill Inc's Business
Chipotle Mexican Grill Inc, with a market cap of $63.41 billion and sales of $9.54 billion, is the largest fast-casual chain restaurant in the United States. The company boasts an operating margin of 16.39% and is known for its high-quality food sourcing and competitive prices. With nearly 3,200 stores, Chipotle Mexican Grill Inc's revenue is generated entirely from restaurant sales and delivery fees. The company's presence extends beyond the United States to Canada, the U.K., France, and Germany.
Financial Strength Breakdown
Chipotle Mexican Grill Inc's Financial Strength rating reflects a resilient balance sheet and prudent capital management. With an Altman Z-Score of 10.53, the company demonstrates a strong defense against financial distress. Additionally, a Debt-to-Revenue ratio of 0.42 indicates strategic debt management, further solidifying its financial health.
Profitability Rank Breakdown
The Profitability Rank of Chipotle Mexican Grill Inc is impressive, with an increasing Operating Margin over the past five years. The company's Gross Margin has also consistently risen, indicating an enhanced ability to convert revenue into profit. The Piotroski F-Score further confirms Chipotle Mexican Grill Inc's solid financial situation.
Growth Rank Breakdown
Chipotle Mexican Grill Inc's high Growth rank underscores its commitment to business expansion. The company's 3-Year Revenue Growth Rate of 15.9% outperforms 86.81% of its industry peers. The significant increase in EBITDA over the past few years highlights Chipotle Mexican Grill Inc's growth capabilities.
Conclusion: Chipotle Mexican Grill Inc's Position for Outperformance
Considering Chipotle Mexican Grill Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors seeking companies with strong GF Scores can explore more options using the GF Score Screen. With its winning formula, could Chipotle Mexican Grill Inc be your next portfolio addition?
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.
