A Good Investment or Not? CHIPOTLE A Good Investment or Not? Presentation by: Justin Baldwin, David Flury, Brittani Owings, and Nikki Mazzatenta

PRESENTED BY: JUSTIN BALDWIN Introduction PRESENTED BY: JUSTIN BALDWIN

Who is Chipotle? “Food with Integrity” (Chipotle) Fast Casual Dining Restaurant JUSTIN Citation: http://www.chipotle.com/en-us/chipotle_story/steves_story/steves_story.aspx

Invest in Chipotle Exceptional Track Record and History Consistently Outperform Competitors Large Potential Growth Opportunities JUSTIN

Chipotle’s history and ethics Presented by: Brittani Owings

Company Life Before Going Public 1993- Founded By Steve Ells 1997- Had14 Locations 1998- Became a Corporation & McDonald’s Purchased a Small Stake Citation: Chipotle’s Website http://www.chipotle.com/en-US/chipotle_story/where_did_we_come_from/where_did_we_come_from.aspx

Company Life Before Going Public Continued 1999- McDonalds Owned 90% of Chipotle Stake 2005- Over 500 Locations 2006- Chipotle’s IPO Began their Start as a Public Company MCD sold CMG and other entities to focus on their core values and needs. Citation: Chipotle’s Website http://www.chipotle.com/en-US/chipotle_story/where_did_we_come_from/where_did_we_come_from.aspx

In the Press, A Negative Spotlight “Penny Rounding” Illegal Immigrant Workers Potential Fraud and Falsification of Financial Documents Jordan and Yates: Wall Street Journal

In the Press, A Positive Spotlight Farm Friendly Web-Based Program: “Farm Team” Chipotle Cultivate Foundation 2011 Annual Report

Presented by: David Flury Beats the competition Presented by: David Flury

Who Are The Biggest Competitors? Jack in the Box (JACK) Panera (PNRA)

Stock Prices

Industry Vs. Chipotle and Competition Ratios- Five Year Average (Factiva) CMG PNRA JACK INDUSTRY Beta 0.92 0.78 1.07 0.79 EPS Growth 39.49% 19.85% 1.16% 16.34% Gross Margin 63.59% 21.94% 20.33% 41.83% ROA 13.37% 11.42% 7.12% 11.58% Citation: FactSet Research Systems Inc.(n.d). Ratio Comparison Report .Factiva

Presented by: Nikki mazzatenta Potential Growth Presented by: Nikki mazzatenta

ShopHouse Restaurant: Southeast Asian Kitchen New Additions ShopHouse Restaurant: Southeast Asian Kitchen Opened September 2011 1 Location on Dupont Circle in Washington D.C Follows Chipotle’s “Farm Friendly” Way to Products Helped Increase Q4 Revenues by 23.7% (fastcasual.com)

Expansion Chipotle Plans to Increase Store Locations in the United States By the End of 2011, Chipotle Expanded overseas 2 Locations in London, England 1 Location in Paris, France 2 Locations in Toronto, Canada Citation: Chipotle Annual Report 2011

What do the Analysts Say? Zacks Consensus Estimates an EPS of $10.88 in 2013; 24.5% Annual Growth Estimates are based off of increasing customer traffic, current store sales, and expansion Citation: http://www.zacks.com/stock/news/73411/chipotle-beats-on-overall-growth

What do the Analysts Say? Kaplan CMG is still a niche in a large market Since 2006 Revenue has tripled and locations are expected to continue expanding Citation: KAPLAN, D. A. (2011). CHIPOTLE'S GROWTH MACHINE. Fortune, 164(5), 134-144.

Conclusion History/ Track Record Surpassing of Their Competitors Potential Growth JUSTIN

INVEST IN CHIPOTLE MEXICAN GRILL!!!!!!

QUESTIONS

Work Cited Carrns, A. (2012, Sep 01). Penny rounded, penny lost? New York Times. Retrieved from http://search.proquest.com/docview/1037485761?accountid=14378; http://sfx.umd.edu/tu?url_ver=Z39.88- 2004&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&genre=unknown&sid=ProQ:ProQ%3Anationalnewscore&atitle=P enny+Rounded%2C+Penny+Lost%3F%3A+%5BBusiness%2FFinancial+Desk%5D&title=New+York+Times&issn=03 624331&date=2012-09- 01&volume=&issue=&spage=B.4&au=Carrns%2C+Ann&isbn=&jtitle=New+York+Times&btitle= Chipotle Mexican Grill Inc (NYS:CMG), March 31,2008- June 30,2012. Financial Data retrieved September 26, 2012, from Mergent Online database. Chipotle Mexican Grill, Inc. SWOT Analysis. (2012, Oct 15). Chipotle Mexican Grill, Inc. SWOT Analysis, 1-8. FactSet Research Systems Inc.(n.d). Ratio Comparison Report .Factiva. Retrieved from http://global.factiva.com.proxy-tu.researchport.umd.edu/ar/default.aspx "Foodservice Industry, 2010." Market Share Reporter. Ed. Robert S. Lazich and Virgil L. Burton, III. 2013 ed. Detroit: Gale Group, 2013. 822 pp. 2 vols. Gale Directory Library. Gale. Towson University. 12 Oct. 2012 <http://find.galegroup.com.proxy-tu.researchport.umd.edu/gdl/start.do?prodId=GDL>. Jordan, M. (2012, May 23). For chipotle, a new investigation begins. Wall Street Journal (Online). Retrieved from http://search.proquest.com/docview/1015173311?accountid=14378; http://sfx.umd.edu/tu?url_ver=Z39.88- 2004&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&genre=unknown&sid=ProQ:ProQ%3Anationalnewscore&atitle=F or+Chipotle%2C+a+New+Investigation+Begins&title=Wall+Street+Journal+%28Online%29&issn=&date=2012- 05- 23&volume=&issue=&spage=&au=Jordan%2C+Miriam&isbn=&jtitle=Wall+Street+Journal+%28Online%29&btitle =

Work Cited Cont. KAPLAN, D. A. (2011). CHIPOTLE'S GROWTH MACHINE. Fortune, 164(5), 134-144. New Zealand Trade and Enterprise (2012). Welcome to New Zealand Trade and Enterprise. Retrieved from http://www.nzte.govt.nz/Pages/default.aspx "Top Mexican QSR Restaurants, 2010." Market Share Reporter. Ed. Robert S. Lazich and Virgil L. Burton, III. 2013 ed. Detroit: Gale Group, 2013. 822 pp. 2 vols. Gale Directory Library. Gale. Towson University. 12 Oct. 2012 <http://find.galegroup.com.proxy- tu.researchport.umd.edu/gdl/start.do?prodId=GDL>. Velasco, S. (2012, Aug 29). Chipotle cheating on pennies or just saving time? The Christian Science Monitor. Retrieved from http://search.proquest.com/docview/1036884335?accountid=14378; http://sfx.umd.edu/tu?url_ver=Z39.88- 2004&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&genre=unknown&sid=ProQ:ProQ%3Anationaln ewscore&atitle=Chipotle+cheating+on+pennies+or+just+saving+time%3F&title=The+Christia n+Science+Monitor&issn=08827729&date=2012-08- 29&volume=&issue=&spage=&au=Velasco%2C+Schuyler&isbn=&jtitle=The+Christian+Science +Monitor&btitle= Yahoo. (2012, September 20). Chipotle Mexican Grill, Inc (CMG). Retrieved from Yahoo! Finance: http://finance.yahoo.com/echarts?s=CMG+Interactive#symbol=cmg;range=my;compare=;indi cator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined; Yate Jr, Alfred (2012, August 15). Pittsburgh Law Office of Alfred G. Yates Jr., PC Files Class Action Lawsuit On Behalf of Shareholders of Zynga Inc. (ZNGA) and Announces Investigations of Alcoa (AA), Chipotle Mexican Grill (CMG), FSI International (FSII), Robbins & Myers (RBN), Sprint Nextel (S), and U.S. Home Systems (USHS). Wall Street Journal. Retrieved from http://online.wsj.com/article/PR-CO-20120815-909259.html?mod=wsj_share_email_bot