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5-Star Stocks Poised to Pop: Chipotle

By Brian D. Pacampara | More Articles
October 20, 2009 | Comments (0)

Based on the aggregated intelligence of 140,000-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 (1993)

Market Cap

$2.9 billion

Industry

Restaurants

Trailing-12-Month Revenue

$1.43 billion

Management

Founder/Co-CEO Steven Ells

Co-CEO Montgomery Moran

Compound Annual Revenue and Net Income Growth (Over Past 3 Years)

25.1% and 51.2%

Cash / Debt

$208.3 million / $3.9 million

Other Highly Rated Restaurant Stocks

McDonald's (NYSE: MCD  )

Yum! Brands (NYSE: YUM  )

CAPS Members Bullish on CMG-B Also Bullish on

Buffalo Wild Wings (Nasdaq: BWLD  )

CAPS Members Bearish on CMG-B Also Bearish on

Research In Motion (Nasdaq: RIMM  )

Amazon (Nasdaq: AMZN  )

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

On CAPS, 98% of the 966 members who have rated Chipotle's B shares believe they will outperform the S&P 500 going forward. These bulls include SeekTheFire and dvena.

Last month, SeekTheFire reminded our community that Chipotle "is a great company with a great product." Our CAPS member continues: "Ahead of its time with focus on organics and natural foods in a value setting. Trend is moving in their favor and as more people discover Food with Integrity it will drive continued growth."

In an earlier pitch, dvena elaborates on Chipotle's fresh way of doing business:

The other great option in the restaurant space ([Buffalo Wild Wings] is the other, [in my humble opinion]). They are fast, great tasting, and inexpensive. They are stellar in sustainable business practices and offer extremely high-quality ingredients. They have even assisted some of their organic suppliers with infrastructure so everyone wins. They are winning by changing the rules.

What do you think about Chipotle, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Chipotle Mexican Grill is a Motley Fool Rule Breakers recommendation and Amazon.com is a Motley Fool Stock Advisor selection. Buffalo Wild Wings and Chipotle Mexican Grill-Class B shares are Motley Fool Hidden Gems selections. The Fool owns shares of Buffalo Wild Wings and Chipotle Mexican Grill-Class B shares. Try any of our Foolish newsletters today, free for 30 days. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

12/31/1969 7:00 PM
CMG-B.DL $0.00 Down +0.00 +0.00%
CHIPOTLE MEXICAN G… CAPS Rating: *****
CMG $378.94 Up +1.49 +0.39%
Chipotle Mexican G… CAPS Rating: **
RIMM $14.57 Down -0.33 -2.21%
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