CMG Stock Fair Value – Chipotle Invests in Robots and Fertilizer Products to Support Sustainable Farming

December 18, 2023

Categories: Intrinsic Value, RestaurantsTags: , , Views: 158

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Chipotle Mexican Grill ($NYSE:CMG) has recently announced that they are investing in robots and products to support sustainable farming. This investment includes robotics and fertilizers that will help farmers produce food more efficiently. Through this investment, Chipotle hopes to reduce their environmental footprint and to be a leader in responsible agricultural practices. The company focuses on natural and organic ingredients and emphasizes the importance of sustainable farming practices. Chipotle is one of the few companies that can trace the origin of its ingredients right back to the source.

As part of their sustainability efforts, they have implemented a farming program that works with farmers to ensure their ingredients are responsibly sourced. This investment will help farmers produce food more efficiently and reduce waste. By doing so, they are supporting farming communities and helping to preserve our planet. The future of sustainable farming looks brighter with the help of Chipotle’s investment.

Market Price

On Thursday, CHIPOTLE MEXICAN GRILL had a 2.7% decrease from the last closing price of 2340.0, with the stock opening at $2344.3 and closing at $2275.7. By implementing these investments, Chipotle believes that it can improve the sustainability of its production and operations, while also providing its customers with quality ingredients. Through these efforts, the company is taking steps to ensure that the food it serves is sourced responsibly, reducing its carbon footprint and helping to maintain a healthy environment. In addition, by using robots and fertilizer, Chipotle hopes to reduce labor costs associated with farming and promote efficient use of land and resources. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for CMG. More…

    Total Revenues Net Income Net Margin
    9.54k 1.17k 12.8%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for CMG. More…

    Operations Investing Financing
    1.92k -977.69 -712.04
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for CMG. More…

    Total Assets Total Liabilities Book Value Per Share
    7.91k 5.03k 105.17
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for CMG are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    17.9% 70.4% 16.4%
    FCF Margin ROE ROA
    14.5% 34.6% 12.3%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – CMG Stock Fair Value

    At GoodWhale, we conducted an analysis of CHIPOTLE MEXICAN GRILL’s wellbeing and found that the intrinsic value of its shares are around $1976.4, calculated by our proprietary Valuation Line. Currently, CHIPOTLE MEXICAN GRILL stock is traded at $2275.7, which is a fair price that is overvalued by 15.1%. This means that investors should take caution when investing in the stock as it may not be an optimal choice based on our analysis. More…

  • Star Chart Analysis
  • Valuation Analysis




  • Peers

    Chipotle Mexican Grill Inc. is a popular Mexican-style fast food restaurant. It was founded in 1993 and has since grown to become one of the most popular fast food chains in the United States. Chipotle competes directly with McDonald’s Corp, Domino’s Pizza Inc, and Darden Restaurants Inc. While all of these companies are very different, they all offer a similar product: fast, convenient, and affordable Mexican-style food.

    Chipotle has always been a favorite among Mexican food lovers for its fresh ingredients, made-to-order meals, and signature burritos. In recent years, however, the company has come under pressure from its competitors. McDonald’s, in particular, has been aggressively expanding its own Mexican-style offerings, such as the McBurrito and the McWrap. Domino’s has also been expanding its menu to include more Mexican-style items, such as quesadillas and nachos.

    Darden Restaurants, meanwhile, owns several popular Mexican-style restaurant chains, including Olive Garden and Red Lobster. While these restaurants are not direct competitors to Chipotle, they do offer a similar product at a lower price point.

    Despite the competition, Chipotle remains a popular choice for Mexican food lovers. The company has continued to grow steadily, even in the face of stiff competition.

    – McDonald’s Corp ($NYSE:MCD)

    McDonald’s Corporation is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a hamburger stand, and later turned the company into a franchise, with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona. McDonald’s first filed for a U.S. trademark on the name “McDonald’s” on April 15, 1961, with the description “Drive-In Restaurant Services”, which continues to be used today. By 1967, McDonald’s had become the largest restaurant chain in the world. The company expanded rapidly in the 1980s and 1990s, opening new restaurants and acquiring many smaller chains. As of 2020, McDonald’s is the world’s second-largest restaurant chain with over 39,000 locations in more than 100 countries.

    The company’s market cap is 181.34B as of 2022. The company has a Return on Equity of -90.17%.

    – Domino’s Pizza Inc ($NYSE:DPZ)

    Domino’s Pizza Inc is a publicly traded company with a market capitalization of $11.37 billion as of 2022. The company has a Return on Equity (ROE) of -11.44%. Domino’s Pizza Inc is a pizza restaurant chain that operates in more than 80 countries. The company was founded in 1960 and is headquartered in Ann Arbor, Michigan.

    – Darden Restaurants Inc ($NYSE:DRI)

    Darden Restaurants Inc is a leading full-service restaurant company with a market cap of 16.15B as of 2022. The company operates more than 1,700 restaurants across the United States and Canada, including Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House and The Capital Grille. Darden’s return on equity of 32.93% for the most recent fiscal year indicates that the company is effectively utilizing shareholders’ equity to generate profit. Darden’s strong financial performance and ability to generate shareholder value through its restaurant brands make it a compelling investment option in the full-service restaurant space.

    Summary

    Chipotle Mexican Grill is a restaurant chain that has invested in sustainable farming robots and fertilizer products to further their environmental and sustainability goals. Analysts have highlighted the company’s long-term growth potential, citing its strong brand recognition, commitment to fresh ingredients, and the growing demand for fast-casual dining options. Chipotle has also been praised for its innovative menu offerings, loyalty program, and digital innovation in response to the pandemic.

    The company’s financial performance over the past few years has been largely positive, with increasing revenues and profits. With a focus on driving customer satisfaction and profitability, Chipotle is expected to continue to be a leader in the fast-casual restaurant industry.

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