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
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.
|Headquarters (founded)||Denver (1993)|
|Market Cap||$12.3 billion|
|Trailing-12-Month Revenue||$2.3 billion|
|Management||Founder/Chairman/Co-CEO Steve Ells
Co-CEO Montgomery Moran
|Return on Equity (average, past 3 years)||22%|
|Cash/Debt||$456.3 million / $3.7 million|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 16% of the 2,994 members who have rated Chipotle believe the stock will underperform the S&P 500 going forward.
The world is deleveraging, the consumer is tapped out, and this is a niche business that sells $8 burritos that is beyond the budget of most families. Who eats there besides young people? Their faithful followers will eventually tire of paying for a premium priced product that is mostly beans and rice and short on meat. Not to mention that it's a high fixed cost business with limited growth potential while priced for 30% [compound annual growth] for the next 10 years. ... All it will take is one bad headline from Europe, QE3, or a slight earnings miss and watch it implode like Netflix.
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