Why is Chipotle stock so high? (2024)

Why is Chipotle stock so high?

Key Takeaways. Chipotle shares surged to a record high in intraday trading Wednesday after the fast casual chain beat profit and sales estimates for the fourth quarter. The company's comparable store sales were up 8.4% from a year ago, driven by a 7.4% increase in foot traffic and a 1% rise in the average check.

Is Chipotle stock overpriced?

Chipotle Mexican Grill appears to be overvalued by 35% at the moment, based on my discounted cash flow valuation. The stock is currently priced at US$2,162 on the market compared to my intrinsic value of $1607.49. This means that the opportunity to buy Chipotle Mexican Grill at a good price has disappeared!

Is Chipotle a good stock to invest in?

CMG is a #3 (Hold) on the Zacks Rank, with a VGM Score of B. Additionally, the company could be a top pick for growth investors. CMG has a Growth Style Score of A, forecasting year-over-year earnings growth of 34.4% for the current fiscal year.

Who owns most of Chipotle stock?

Chipotle (CMG) Ownership Overview

The ownership structure of Chipotle (CMG) stock is a mix of institutional, retail and individual investors. Approximately 58.69% of the company's stock is owned by Institutional Investors, 20.06% is owned by Insiders and 21.25% is owned by Public Companies and Individual Investors.

Why is Chipotle growing so fast?

As consumers opt for quick service instead of casual restaurants due to inflation and tighter wallets, Chipotle is poised to gain additional market share, similar to what it did in 2008 and 2009. And while price is a factor, convenience also plays a role, according to Tower.

Why did McDonald's stop investing in Chipotle?

In October 2006, McDonald's fully divested from Chipotle. This was part of a larger initiative for McDonald's to divest all of its non-core business restaurants — Chipotle, Donatos Pizza, and Boston Market — so that it could focus on the main McDonald's chain.

What is the highest Chipotle stock has ever been?

The all-time high Chipotle Mexican Grill stock closing price was 2666.99 on February 07, 2024. The Chipotle Mexican Grill 52-week high stock price is 2725.83, which is 4% above the current share price. The Chipotle Mexican Grill 52-week low stock price is 1470.05, which is 43.9% below the current share price.

Who is Chipotle largest investor?

Shareholders
NameEquitiesValuation
The Vanguard Group, Inc. 9.567 %2,625,7556 005 M $
Vanguard Group, Inc. (Subfiler) 9.356 %2,567,7055 872 M $
Capital Research & Management Co. (Global Investors) 4.489 %1,232,0872 818 M $
T Rowe Price Associates, Inc. (13F Subfiler) 4.373 %1,200,2112 745 M $
6 more rows

Did McDonald's invest in Chipotle?

No. McDonald's Corporation became a major investor in 1998, but McDonald's fully divested itself from Chipotle in 2006.

Why is Chipotle so profitable?

One of the keys to Chipotle's success is its small menu. A smaller menu has three benefits. First, since Chipotle only stocks fresh ingredients, there is always a chance of food spoilage. The small menu reduces the number of ingredients needed on-hand, thus reducing the likelihood of waste.

Why are Starbucks and Chipotle always together?

Chipotle and Starbucks are often co-located because they cater to a similar clientele and have respect for each other's product, McNamara said. “Both run strong operations, have strong followings, both are good-credit tenants that landlords want,” he said.

Is Chipotle a Fortune 100 company?

About Chipotle

Chipotle is ranked on the Fortune 500 and is recognized on the 2022 list for Fortune's Most Admired Companies. With over 100,000 employees passionate about providing a great guest experience, Chipotle is a longtime leader and innovator in the food industry.

Can you franchise Chipotle?

With only a few exceptions, all 1200 Chipotle Mexican Grill restaurants are company owned. While a few franchises were sold in the early days, since Chipotle's success the franchising plan has been scrapped in favor of complete corporate ownership and control.

Why is Chipotle falling?

(NYSE:CMG) has a market capitalization of $63.682 billion. "In the consumer discretionary sector, Chipotle Mexican Grill, Inc. (NYSE:CMG) proved a detractor as investors were disappointed in management's decision not to push additional menu pricing, which resulted in full year guidance falling short of expectations.

Why is Chipotle so expensive 2023?

Laurie Schalow, chief corporate affairs officer at Chipotle, pointed to the state of the economy as the reason for the price increases — the chain's fourth in the past two years. She said the price increases would be "modest" and are being taken to "offset inflation."

Why do Millennials like Chipotle?

Step 1: Add a dash of integrity

Chipotle's ingredients are sourced from farms rather than factories and are free from artificial fillers and flavours. Millennials care about brands that have solid values, and want to support the mission of Chipotle as well as its product.

What is the Chipotle controversy?

Then, starting in October 2015, Chipotle endured a notorious monthslong, multi-episode E. coli scandal (hospitalizing 22 people in 14 states), compounded by Norovirus and Salmonella outbreaks in between.

Why is Chipotle being sued?

The Equal Employment Opportunity Commission is suing Chipotle on behalf of a Muslim teenager who says her assistant manager ripped off her hijab at one of the chain's Kansas locations.

Are Chipotle and Panera owned by the same company?

No they are not. Panera Bread Company is an American chain store of bakery-café fast casual restaurants with over 2,000 locations, all of which are in the United States and Canada . Its headquarters are in Sunset Hills, Missouri , a suburb of St.

Who invested in Chipotle?

Top 10 Owners of Chipotle Mexican Grill Inc
StockholderStakeShares owned
BlackRock Fund Advisors5.03%1,380,404
T. Rowe Price Associates, Inc. (I...4.37%1,200,211
Capital Research & Management Co....4.07%1,117,433
SSgA Funds Management, Inc.3.89%1,068,814
6 more rows

Is Chipotle profitable?

Profit margin can be defined as the percentage of revenue that a company retains as income after the deduction of expenses. Chipotle Mexican Grill net profit margin as of September 30, 2023 is 12.45%.

Did McDonald's own 90% of Chipotle?

With the Golden Arches holding a 90% stake in the company, it seemed like McDonald's was in it for the long haul. Then just a year later, the company divested from Chipotle completely.

How much did Chipotle CEO make?

Chipotle Mexican Grill's CEO is Brian Niccol, appointed in Mar 2018, has a tenure of 5.92 years. total yearly compensation is $17.19M, comprised of 7.3% salary and 92.7% bonuses, including company stock and options. directly owns 0.082% of the company's shares, worth $59.83M.

How much is the CEO of Chipotle worth?

The estimated net worth of Steve Ells is at least $550 Million dollars as of 2024-02-10. Steve Ells is the Executive Chairman of Chipotle Mexican Grill Inc and owns about 208,339 shares of Chipotle Mexican Grill Inc (CMG) stock worth over $550 Million.

How much did Chipotle CEO make last year?

According to proxy filings with the Securities and Exchange Commission Monday, Niccol earned a total of $17.2 million last year. That's down from the $17.9 million in total compensation earned in 2021. Niccol's base salary of $1.25 million has not changed since 2020, though other executives got a raise last year.

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