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Here's How Much You'd Have If You Invested $1000 in Chipotle Mexican Grill a Decade Ago
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Chipotle Mexican Grill (CMG - Free Report) ten years ago? It may not have been easy to hold on to CMG for all that time, but if you did, how much would your investment be worth today?
Chipotle Mexican Grill's Business In-Depth
With that in mind, let's take a look at Chipotle Mexican Grill's main business drivers.
A Delaware corporation, Chipotle Mexican Grill, together with its subsidiaries, operates quick-casual and fresh Mexican food restaurant chains. The company was founded in 1993 by Steve Ells, who started with a single restaurant in Denver, CO. The company offers a focused menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads. Chipotle restaurants feature free-range, hormone-free pork, natural chicken and other meat products cooked using traditional methods and served in a unique atmosphere.
The company is committed to using high-quality real ingredients, classic cooking techniques and distinctive interior design to serve customers. As of Sep 30, 2023, the company owned and operated about 3,321 restaurants across the United States, Canada, the U.K., France and Germany.
The company’s growth is significantly driven by its digital platform. It has enhanced its capabilities by digitizing restaurant kitchens, expanding partnerships with third-party delivery services, and increasing the number of Chipotlanes (drive-through format for customer pick-up of digital orders). Digital sales, encompassing revenue generated through the Chipotle website, Chipotle app, or third-party delivery aggregators, which also includes revenue deferrals linked to Chipotle Rewards, constituted 39.4% of food and beverage revenue in 2022, compared to 45.0% in 2021. The company has facilitated convenient digital ordering through enhancements to the Chipotle app and website, including unlimited customization, contactless delivery, and group ordering.
The company utilizes multiple marketing channels, including national television, digital marketing, social media, fundraising, events and sponsorships to reach consumers. Third-party service providers mostly provide delivery services.
In 2018, Chipotle launched a loyalty program called Chipotle Rewards, which provides customers with the opportunity to earn bonus points or free food. Earned rewards generally expire one to six months after they are issued and points typically expire if an account is inactive for six months.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Chipotle Mexican Grill ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in January 2014 would be worth $4,962.91, or a gain of 396.29%, as of January 30, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 177.76% and the price of gold increased 57.24% over the same time frame in comparison.
Analysts are forecasting more upside for CMG too.
Shares of Chipotle have outperformed the industry in the past year. The company benefits from its digital efforts, Chipotlane add-ons and marketing initiatives. This and strength in digital sales, a rise in menu prices and new restaurant openings have been driving the company. Also, a strong comparable restaurant sales growth bodes well. Going forward, it continues to focus on the stage gate process and leveraging digital programs to expand access and convenience. Earnings estimates for 2024 have increased in the past 30 days, depicting analysts optimism regarding the stock growth potential. However, supply chain challenges, elevated wage inflation and expenses associated with new menus remain headwinds. For fourth-quarter 2023, the company anticipates the cost of sales to be around 30%.
The stock is up 5.14% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2023. The consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Chipotle Mexican Grill a Decade Ago
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Chipotle Mexican Grill (CMG - Free Report) ten years ago? It may not have been easy to hold on to CMG for all that time, but if you did, how much would your investment be worth today?
Chipotle Mexican Grill's Business In-Depth
With that in mind, let's take a look at Chipotle Mexican Grill's main business drivers.
A Delaware corporation, Chipotle Mexican Grill, together with its subsidiaries, operates quick-casual and fresh Mexican food restaurant chains. The company was founded in 1993 by Steve Ells, who started with a single restaurant in Denver, CO. The company offers a focused menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads. Chipotle restaurants feature free-range, hormone-free pork, natural chicken and other meat products cooked using traditional methods and served in a unique atmosphere.
The company is committed to using high-quality real ingredients, classic cooking techniques and distinctive interior design to serve customers. As of Sep 30, 2023, the company owned and operated about 3,321 restaurants across the United States, Canada, the U.K., France and Germany.
The company’s growth is significantly driven by its digital platform. It has enhanced its capabilities by digitizing restaurant kitchens, expanding partnerships with third-party delivery services, and increasing the number of Chipotlanes (drive-through format for customer pick-up of digital orders). Digital sales, encompassing revenue generated through the Chipotle website, Chipotle app, or third-party delivery aggregators, which also includes revenue deferrals linked to Chipotle Rewards, constituted 39.4% of food and beverage revenue in 2022, compared to 45.0% in 2021. The company has facilitated convenient digital ordering through enhancements to the Chipotle app and website, including unlimited customization, contactless delivery, and group ordering.
The company utilizes multiple marketing channels, including national television, digital marketing, social media, fundraising, events and sponsorships to reach consumers. Third-party service providers mostly provide delivery services.
In 2018, Chipotle launched a loyalty program called Chipotle Rewards, which provides customers with the opportunity to earn bonus points or free food. Earned rewards generally expire one to six months after they are issued and points typically expire if an account is inactive for six months.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Chipotle Mexican Grill ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in January 2014 would be worth $4,962.91, or a gain of 396.29%, as of January 30, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 177.76% and the price of gold increased 57.24% over the same time frame in comparison.
Analysts are forecasting more upside for CMG too.
Shares of Chipotle have outperformed the industry in the past year. The company benefits from its digital efforts, Chipotlane add-ons and marketing initiatives. This and strength in digital sales, a rise in menu prices and new restaurant openings have been driving the company. Also, a strong comparable restaurant sales growth bodes well. Going forward, it continues to focus on the stage gate process and leveraging digital programs to expand access and convenience. Earnings estimates for 2024 have increased in the past 30 days, depicting analysts optimism regarding the stock growth potential. However, supply chain challenges, elevated wage inflation and expenses associated with new menus remain headwinds. For fourth-quarter 2023, the company anticipates the cost of sales to be around 30%.
The stock is up 5.14% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2023. The consensus estimate has moved up as well.