5-Star Stocks Poised to Pop: Chipotle Mexican Grill

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Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the class B common shares of burrito specialist Chipotle Mexican Grill (NYSE: CMG) (NYSE: CMG-B) have earned a coveted five-star ranking.

With that in mind, let's take a closer look at Chipotle's business and see what CAPS investors are saying about the stock right now.

Chipotle facts

Headquarters (founded)

Denver, Colorado (1993)

Market Cap

$2.23 billion

Industry

Restaurants

Trailing-12-Month Revenue

$1.33 billion

Management

Founder/Co-CEO Steven Ells

Co-CEO Montgomery Moran

Compound Annual Net Income Growth (over last three years)

27.5%

Competitors

McDonald's (NYSE: MCD)

Yum! Brands (NYSE: YUM)

CAPS members bullish on CMG-B also bullish on

Buffalo Wild Wings

Apple (Nasdaq: AAPL)

CAPS members bearish on CMG-B also bearish on

Wal-Mart Stores (NYSE: WMT)

Research In Motion (Nasdaq: RIMM)

Sources: Capital IQ (a division of Standard & Poor's), Yahoo! Finance, and Motley Fool CAPS.

Over on CAPS, 986 of the 1,005 members who have rated Chipotle -- or 98% -- believe the stock will outperform the S&P 500 going forward. These bulls include All-Star ACMIP, who is ranked in the top 0.5% of our community, and JMJeffrey.

Last week, ACMIP highlighted Chipotle as a tasty and timely opportunity:

In this environment, owning self sustaining cash flow generating companies with defensible franchises, rock solid balance sheets and solid long term growth prospects...such as Chipotle, is more important than ever.

Thankfully, the current bear market is giving us the opportunity to buy this great company at a ridiculously cheap price. Outperform.

In a pitch from December, JMJeffrey expands on the stock's long-run growth potential:

Chipotle is a long term winner and I love its position as Mexican quasi-fast food (some call it "fast casual"). Whatever you want to call it, it works and it is growing and adding stores with lots of room for further expansion. The chain spun off from [McDonald's] so I like the management structure and innovative way they design their restaurants for traffic flow and positive experience. This unique nitch/experience position allows it to be a preferable alternative 'tweener' between the grab and go taco shack and the sit-down and sip margarita joints. … 5, 10 and 20 years-Outperform!

What do you think about Chipotle Mexican Grill, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Chipotle (Class B) and Buffalo Wild Wings are Motley Fool Hidden Gems picks. Apple is a Stock Advisor selection, and Wal-Mart is a choice of Inside Value. The Fool owns shares of Chipotle (Class B) and Buffalo Wild Wings. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 10, 2009, at 10:18 PM, DaytonFlyers wrote:

    Besides voting rights, is there any difference between class b (CMG.B) and class A (CMG)?

  • Report this Comment On April 11, 2009, at 1:16 PM, alexwong0708 wrote:

    Chipotle is definitely a up and coming company with a good reputation. However, I do have some questions.

    While the p/s ratio looks for Chipotle, is gross and net profit margin look less attractive, which leads to a high p/e ratio. It has a net profit margin or 5%, compared to MCD's 25%.

    However, I am quite impressed with other ratios. Good current ratio and debt/equity ratio. etc etc

    Do you believe the company can become more efficiently run in the future?

  • Report this Comment On April 11, 2009, at 1:17 PM, alexwong0708 wrote:

    Chipotle is definitely a up and coming company with a good reputation. However, I do have some questions.

    While the p/s ratio looks for Chipotle, is gross and net profit margin look less attractive, which leads to a high p/e ratio. It has a net profit margin or 5%, compared to MCD's 25%.

    However, I am quite impressed with other ratios. Good current ratio and debt/equity ratio. etc etc

    Do you believe the company can become more efficiently run in the future?

Add your comment.

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12/21/2009 4:03 PM
CMG-B $89.71 Down +0.00 +0.00%
CHIPOTLE MEXICAN G… CAPS Rating: *****
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Research In Motion… CAPS Rating: **
MCD $66.53 Down -0.15 -0.23%
McDonald's Corp CAPS Rating: ****
AAPL $222.25 Down -2.40 -1.07%
Apple, Inc. CAPS Rating: ***
WMT $55.34 Down -0.60 -1.07%
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CMG $113.63 Down -0.54 -0.47%
Chipotle Mexican G… CAPS Rating: ***

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