Chipotle Mexican Grill Stock: 6 Straight Green Days, Up 26%
Chipotle Mexican Grill (CMG) stock is on a 6-day winning streak, up 25.8% since the run began. That added about $9.1 billion to the company’s market value, which now stands at about $44.5 billion. The stock closed at $35.20 on Wednesday, November 4, 13.9% below its 52-week high of $40.87 and 27.9% above its low of $27.52.
The Streak Next To The S&P 500
Returns for CMG and the S&P 500 over the streak and the periods around it, all ending Wednesday, November 4 and including dividends:
| Return Period | CMG | S&P 500 |
|---|---|---|
| 1 Day | 5.8% | 1.6% |
| 6 Days (Current Streak) | 25.8% | -0.4% |
| 1 Month (21 Trading Days) | 13.9% | -1.6% |
| 3 Months (63 Trading Days) | 4.4% | 0.0% |
| Year To Date | -4.9% | 13.4% |
| 1 Year (252 Trading Days) | 11.7% | 13.5% |
A Stock-Specific Run, Or A Market Move?
The market explains little of this: the S&P 500 lost 0.4% over the same 6 sessions, including dividends, against Chipotle Mexican Grill’s +25.8%. 7 other S&P 500 stocks are currently on winning streaks of 6 days or longer. Over the past three months the stock is up 4.4%, a window that includes the streak; over the other 57 sessions of that window it was down 17.0%.
What The Numbers Say About The Rally
On the fundamentals, revenue grew 7.9% over the last twelve months, against a median of 7.7% for S&P 500 Consumer Discretionary stocks; its operating margin is 14.9%, versus a median of 14.9%; and the stock trades at 32.3 times trailing earnings against a median of 20.0. The numbers make the run harder to justify: a multiple well above the median. At this price, the stock is asking a lot of the business.
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One Hot Stock Is A Story. Thirty Sound Ones Are A Strategy
A streak like this earns a place on your watchlist, and it also earns a question: how much of your outcome do you want depending on one company keeping this up?
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