1. Chipotle Mexican Grill Company Analysis James Gaffigan Zachary Hylton Jordan Schwartz Nicholas Pycha

2. Overview Founded:1993, Colorado Industry: fast casual food 1,300 restaurants globally Restaurant chains in: ◦35 states in U.S ◦District of Columbia ◦Ontario, Canada ◦Europe (Zack's, 2012)

3. Overview Serves: ◦Burritos and burrito bowls ◦Tacos ◦Salads Food with Integrity Policy ◦Fresh Ingredients ◦local produce ◦Naturally raised animals (Zack's, 2012)

4. Investment Decision Not a good long-term investment ◦Fierce competition: Taco Bell and Qdoba ◦Overvalued stock price/ lack of dividends ◦Current legal issues (Mussi, 2012)

5. Jordan Schwartz SWOT Analysis ◦Chipotle vs. Taco Bell Sustainable resources ◦Food with Integrity vs. Cantina Bell

6. SWOT Analysis Strengths ◦Sustainable resources: Food with Integrity ◦Marketing programs ◦Minimal growth Weaknesses ◦Irregularities in work authorization documents ◦Increased labor costs (EBSCO, 2012) & DATAMONITOR: Yum! Brands, Inc. (2010, September 2)

7. SWOT Analysis Opportunities ◦Focus on expansion Threats ◦Fierce competition ◦Increasing costs (EBSCO, 2012)

8. James Gaffigan Competitive factors Business in the news

9. Competitive Factors Current and potential earnings Mergers and acquisitions Any development of a new product News (How the Market Works, 2012)

10. Business in the News Rounding price of food Legal issues Financial prospects disclosed incorrectly Substantial drop in stock price (Torrisi, 2012) (Olsen, 2012)

11. Zachary Hylton Financial Analysis ◦Significant factors  Gross Profit  Net Income  P/E Ratio  Earnings Per Share (Zack's, 2012)

12. Gross Profit (Zack's, 2012)

13. Net Income (Zack's, 2012)

14. P/E Ratio (zacks.com)

15. Earnings per Share (Zack's, 2012)

16. Stock Prices (yahoo.finance.com)

17. Dividends CompanyYieldAnnual Div.Payout Ratio Chipotle-0- Yum Brands1.93%$1.34.36 (zacks.com)

18. Nick Pycha Analyst's Evaluations ◦Standard and Poor’s ◦Zacks Investment Conclusion: Our recommendation

19. Standard & Poor’s Current recommendation: Hold Risk assessment: Medium risk Values CMG stock price at $278.20 per share ◦Overvalued by $58.20 or 17.3% (Standard & Poor’s, 2012)

20. Zacks Investment Research Zacks Rank: 3- Hold Recommendation: Neutral Failed to meet estimations ◦Earnings per share ◦Revenue (Zack's, 2012)

21. Conclusions Fierce competition Overvalued stock price/ lack of dividends Current legal issues Recommendation: YUM Brands