By Mac Greer October 1, 2007 | Comments (2)
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Shares of Chipotle Mexican Grill (NYSE: CMG) (NYSE: CMG-B) have nearly doubled in the past six months. The burrito business now sports a market capitalization of around $4 billion -- three times the market cap of Panera Bread (Nasdaq: PNRA). So is Chipotle overvalued, or is it the next Starbucks (Nasdaq: SBUX)? In this installment of "Fool Video," I ask Motley Fool analyst Tim Beyers.
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Who did you get to dress up as Benjamin Franklin?
The comparison to Starbucks is an interesting one. I've never really thought about that before. Both are chain businesses in the food services industry, but what are the other similarities?
Hi BigBenjamins,
Who dressed up as Ben Franklin? I'd love to say it was David and Tom's crazy uncle Bill but, alas, I've no idea.
Other similarities to Starbucks:
1. Powerful brand and loyal repeat customer base.
2. Addictive product. (You need to try a loaded carnitas burrito if you don't know what I'm talking about.)
3. Self-funded growth through excellent cash flow.
Does that help?
Tim
TMFMileHigh
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