Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, burrito specialist Chipotle Mexican Grill (CMG +2.30%) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Chipotle, and see what CAPS investors are saying about the stock right now.
Chipotle facts
|
Headquarters (founded) |
Denver (1993) |
|
Market Cap |
$9.4 billion |
|
Industry |
Restaurants |
|
Trailing-12-Month Revenue |
$2.6 billion |
|
Management |
Founder/Chairman/Co-CEO Steven Ellis Co-CEO Montgomery Moran |
|
Return on Equity (average, past 3 years) |
23.3% |
|
Cash/Debt |
$573.9 million / $3.6 million |
|
Competitors |
Panda Restaurant Qdoba Restaurant Taco Bell |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 14% of the 3,195 members who have rated Chipotle believe the stock will underperform the S&P 500 going forward.
A couple of months ago, one of those Fools, badducky, showed skepticism over Chipotle's growth potential:
I think we're seeing the kind of saturation and copycatting competitors that makes huge expansion difficult. Naturally, this explains the Asian [ShopHouse] experiment. With no explosive growth realistically present with just burritos, they need to do the magic again with another restaurant brand. Being a successful and explosive restaurant chain is very, very hard to do once. Twice is not impossible, because the talent is present, but it is certainly not probable in the best of circumstances.
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