Gourmet investment: Chipotle exceeds all expectations.

Last Updated: 8. Februar 2024By

Today we turn our attention to a special treat from the fast food industry: Chipotle Mexican Grill. The company released its quarterly numbers on Tuesday evening and caused a stir. Let’s take a look at what’s behind the new all-time high of the stock.

Chipotle surpasses all expectations The numbers from Chipotle obviously pleased investors very much. After the release of the quarterly results, the stock jumped to a new all-time high in after-hours trading in the US. Compared to McDonald’s, whose numbers disappointed at the beginning of the week, Chipotle impressively showed how to do it better: With a revenue increase of 15.6% to $2.52 billion, Chipotle exceeded expectations by $30 million.

Six-month chart of Chipotle Mexican Grill The stock is forming a strong trend. (Source: Stock Screener)

Strong performance in all areas Not only did the revenue impress, but also the comparable store sales, which were 8.4% higher than McDonald’s. The growth led to an improvement in the operating margin from 13.6 to 14.4%. Earnings per share exceeded analyst estimates by 63 cents at $10.36, highlighting the company’s strength.

Future-oriented plans and outlook For the coming fiscal year, Chipotle has big plans: the opening of around 300 new locations and a sales increase of around 15%. In addition, a share buyback program of $200 million was announced, reflecting management’s confidence in the company’s business development.

Analysis of stock valuation Despite reaching an all-time high and impressive growth rates, the stock is far from cheap with a price-earnings ratio of 46 for 2024 and 38.6 for 2025. The high price-earnings-growth ratio (PEG) of 1.25 suggests that the stock has already priced in a large portion of its growth potential.

Conclusion: A matter of taste at a high price In summary, Chipotle has impressively confirmed its position as one of the most dynamic fast food chains. The impressive quarterly numbers, successful margin improvement, and positive outlook until 2024 clearly speak for the company. However, the high valuation of the stock reflects the already high expectations of the market. For investors, this means that while the stock may continue to be attractive, a careful evaluation is necessary to decide if it fits into their own portfolio.