2024-06-09 09:00:36 ET
Summary
- CMG's strategic fast casual/ healthy food branding and digital investments have contributed to its robust top/ bottom line growth and impressive 5Y stock returns of +342%.
- Most importantly, the management has been able to achieve all of these impressive growth with effectively zero debts, increasingly rich balance sheet, and extremely tight share count.
- Combined with the promising growth prospects and the upcoming 50-for-10 stock split, it is unsurprising why the CMG stock has pulled forward much of its upside potential.
- While impressive, we do not believe in chasing expensive stocks, with growth oriented investors better off waiting for a moderate retracement after the split is completed.
- Otherwise, traders may consider unlocking great gains at these inflated levels, following the massive insider selling thus far.
CMG's Highly Profitable & Sustainable Business May Never Come Cheap After All
We previously covered McDonald's Corporation ( MCD ), discussing how its products had been resilient against the pandemic along with being inflation-proof and recession-proof, despite the elevated interest rate environment and tightened discretionary spending.
In this article, I shall be looking at Chipotle Mexican Grill, Inc. (CMG) and sharing our findings about the stock, continuing the theme surrounding the restaurant sector....
Read the full article on Seeking Alpha
For further details see:
Chipotle's Profitable Growth May Never Come Cheap - Hold Onto Your Winner