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This is Steven. $$$MR. MARKET$$$ is my Dad. Since I am a Rutgers student, $$$MR. MARKET$$$ decided to give me the opportunity to stand in for him on his latest stock pick. Don’t worry, I have 20 years of experience being trained directly under the supervision of $$$MR. MARKET$$$.
Today’s stock pick is Chipotle (CMG). My Dad mispronounces the name of this restaurant but he likes their food. Today I bought CMG at 158.43. I will sell it in 4 – 6 weeks at 182.94.
Chipotle operates a national chain of fast-casual restaurants with a focused menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads. Chipotle opened its first restaurant in 1993
The reason I like CMG is:
Every single Chipotle store is a success. If you build more stores, you build more successes. This contributes to their revenue and earnings growth. It’s a simple equation.
Chipotle has 1,000 restaurants in the U.S and will be branching out internationally. More stores means more money. Over the last 5 years, for example, Chipotle has grown revenue at a 24% per year. Over the same period, earnings have grown about 59%. Chipotle has plenty of room to grow and aren’t even close to Starbucks or McDonald’s saturation. Think about it. How many Chipotles do you have close to YOUR home? The more room a company has to grow, the higher its stock price can climb. On top of the growth, as more people know about this company, same store sales will grow as well.
The company produced net income of $46.5 million, or $1.46 per diluted share, in its second quarter on $466.8 million in revenue. Income grew 31.3%, or 32.7% per share, over the year-ago quarter and revenue shot up 20.1% over the same period of last year. In 2009’s second quarter Chipotle earned $35.4 million, or $1.10 per diluted share.
Analysts’ consensus foresaw the stock coming in with $1.39 in earnings per share on $452.8 million in revenue.
For restaurants open at least 12 months sales rose 8.7%, and Chipotle reported average restaurant sales were $1.8 million. The company reported restaurant level operating margin to be 26.9% this quarter, a 90-basis-point increase over the year-ago quarter.
I know I'm not as funny as my Dad and I certainly know I’m not $$$MR. MARKET$$$ - but I bet you a Cayenne pepper that this stock adds to his streak of winners.
Steven
www.mrmarketishuge.com
Today’s stock pick is Chipotle (CMG). My Dad mispronounces the name of this restaurant but he likes their food. Today I bought CMG at 158.43. I will sell it in 4 – 6 weeks at 182.94.
Chipotle operates a national chain of fast-casual restaurants with a focused menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads. Chipotle opened its first restaurant in 1993
The reason I like CMG is:
- First of all, the food is great. I always eat at the North Brunswick Chipotle and it rocks. As long as you have a good product, you’ll be able to sell it. Chipotle has placed second among large chains in the latest annual fast-food survey from restaurant rating service Zagats. It’s healthy fast food. Not Taco Bell.
- The stock is up over 100% in the last year. People..and big funds..are loading up on it like Trevor loads up on the beef burrito.
- Now the PE of 34 may be scary for some people, but the year on year revenue growth is over 20%.
- Return on Assets = 16%
- Return on Equity = 21%
- Earnings growth is 33%
Every single Chipotle store is a success. If you build more stores, you build more successes. This contributes to their revenue and earnings growth. It’s a simple equation.
Chipotle has 1,000 restaurants in the U.S and will be branching out internationally. More stores means more money. Over the last 5 years, for example, Chipotle has grown revenue at a 24% per year. Over the same period, earnings have grown about 59%. Chipotle has plenty of room to grow and aren’t even close to Starbucks or McDonald’s saturation. Think about it. How many Chipotles do you have close to YOUR home? The more room a company has to grow, the higher its stock price can climb. On top of the growth, as more people know about this company, same store sales will grow as well.
The company produced net income of $46.5 million, or $1.46 per diluted share, in its second quarter on $466.8 million in revenue. Income grew 31.3%, or 32.7% per share, over the year-ago quarter and revenue shot up 20.1% over the same period of last year. In 2009’s second quarter Chipotle earned $35.4 million, or $1.10 per diluted share.
Analysts’ consensus foresaw the stock coming in with $1.39 in earnings per share on $452.8 million in revenue.
For restaurants open at least 12 months sales rose 8.7%, and Chipotle reported average restaurant sales were $1.8 million. The company reported restaurant level operating margin to be 26.9% this quarter, a 90-basis-point increase over the year-ago quarter.
I know I'm not as funny as my Dad and I certainly know I’m not $$$MR. MARKET$$$ - but I bet you a Cayenne pepper that this stock adds to his streak of winners.
Steven
www.mrmarketishuge.com
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