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

2. PRESENTED BY: JUSTIN BALDWIN
Introduction
PRESENTED BY: JUSTIN BALDWIN

3. Who is Chipotle? “Food with Integrity” (Chipotle)
Fast Casual Dining Restaurant
JUSTIN
Citation:

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

5. Chipotle’s history and ethics Presented by: Brittani Owings

6. 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

7. 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

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

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

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

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

12. Stock Prices

13. 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

14. Presented by: Nikki mazzatenta
Potential
Growth
Presented by: Nikki mazzatenta

15. 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)

16. 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

17. 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:

18. 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),

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

20. INVEST IN CHIPOTLE MEXICAN GRILL!!!!!!

21. QUESTIONS

22. Work Cited
Carrns, A. (2012, Sep 01). Penny rounded, penny lost? New York Times. Retrieved from &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= &date= &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
"Foodservice Industry, 2010." Market Share Reporter. Ed. Robert S. Lazich and Virgil L. Burton, III ed. Detroit: Gale Group, pp. 2 vols. Gale Directory Library. Gale. Towson University. 12 Oct <
Jordan, M. (2012, May 23). For chipotle, a new investigation begins. Wall Street Journal (Online). Retrieved from &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= &volume=&issue=&spage=&au=Jordan%2C+Miriam&isbn=&jtitle=Wall+Street+Journal+%28Online%29&btitle =

23. Work Cited Cont.
KAPLAN, D. A. (2011). CHIPOTLE'S GROWTH MACHINE. Fortune, 164(5),
New Zealand Trade and Enterprise (2012). Welcome to New Zealand Trade and Enterprise. Retrieved from
"Top Mexican QSR Restaurants, 2010." Market Share Reporter. Ed. Robert S. Lazich and Virgil L. Burton, III ed. Detroit: Gale Group, pp. 2 vols. Gale Directory Library. Gale. Towson University. 12 Oct < 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 &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= &date= &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: 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