Does Chipotle Mexican Grill Stock Lead the Pack?
With Chipotle Mexican Grill falling -18% in a Day, it makes sense to re-evaluate vs its peers. Consistently assessing alternatives is core to a sound investment approach. Here is how Chipotle Mexican Grill (CMG) stock stacks up against its peers in size, valuation, growth and margin.
- CMG’s operating margin of 16.9% is strong, lower than most peers – trailing MCD (46.1%).
- CMG’s revenue growth of 7.3% in the last 12 months is moderate, outpacing MCD, SBUX but lagging YUM, QSR, TXRH.
- CMG’s stock is down 41.6% in last 1 year, and trades at a PE of 28.3; it underperformed MCD, SBUX, YUM, QSR, TXRH.
As a quick background, Chipotle Mexican Grill provides fast-casual Mexican cuisine with approximately 3,000 restaurants across the United States, Canada, the United Kingdom, France, Germany, and Europe since 1993.
A single stock can be risky, but there is a huge value to a broader, diversified approach we take with the Trefis High Quality Portfolio. We go beyond just equities. Is a portfolio of 10% commodities, 10% gold, and 2% crypto in addition to equities and bonds likely to return more during the next 1-3 years, and protect you better if markets crash 20%? We have crunched the numbers.
| CMG | MCD | SBUX | YUM | QSR | TXRH | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 43.4 | 216.1 | 94.5 | 38.8 | 22.0 | 11.0 |
| Revenue ($ Bil) | 11.8 | 26.1 | 36.7 | 7.9 | 9.1 | 5.7 |
| PE Ratio | 28.3 | 25.7 | 35.9 | 27.1 | 25.6 | 25.1 |
| LTM Revenue Growth | 7.3% | 1.2% | 0.6% | 11.3% | 21.8% | 14.6% |
| LTM Operating Margin | 16.9% | 46.1% | 10.5% | 30.8% | 25.8% | 9.2% |
| LTM FCF Margin | 13.3% | 26.5% | 6.1% | 19.4% | 14.9% | 6.6% |
| 12M Market Return | -41.6% | 6.2% | -12.4% | 6.3% | -0.8% | -13.5% |
Why does this matter? CMG just went down -22.2% in a week – peer comparison puts stock performance, valuation, and financials in context – highlighting whether it is truly outperforming, lagging behind, and above all – can this continue? Read Buy or Sell CMG Stock to see if Chipotle Mexican Grill is really a falling knife. Sharp dips often come with rebound opportunities – see how the stock has dipped and recovered in the past through CMG Dip Buyer Analysis lens.
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Revenue Growth Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| CMG | 7.3% | 14.6% | 14.3% | 14.4% |
| MCD | 1.2% | 1.7% | 10.0% | -0.2% |
| SBUX | 0.6% | 0.6% | 11.6% | 11.0% |
| YUM | 11.3% | 6.7% | 3.4% | 3.9% |
| QSR | 21.8% | 19.7% | 7.9% | 13.3% |
| TXRH | 14.6% | 16.0% | 15.4% | 15.9% |
Operating Margin Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| CMG | 16.9% | 17.5% | 16.5% | 14.0% |
| MCD | 46.1% | 45.7% | 46.1% | 44.6% |
| SBUX | 10.5% | 14.1% | 15.3% | 13.7% |
| YUM | 30.8% | 31.8% | 32.5% | 31.7% |
| QSR | 25.8% | 27.6% | 30.4% | 31.1% |
| TXRH | 9.2% | 9.6% | 7.6% | 8.0% |
PE Ratio Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| CMG | 28.3 | 53.8 | 51.3 | 43.0 |
| MCD | 25.7 | 25.3 | 25.5 | 31.4 |
| SBUX | 35.9 | 27.5 | 26.7 | 34.9 |
| YUM | 27.1 | 25.5 | 23.0 | 27.6 |
| QSR | 25.6 | 20.4 | 20.5 | 19.7 |
| TXRH | 25.1 | 27.8 | 26.8 | 22.8 |
While peer comparison is critical, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.