Author Topic: CMG - Chipotle  (Read 122502 times)

merkhet

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Re: CMG - Chipotle
« Reply #20 on: August 12, 2015, 08:19:44 AM »
They need to put up a sign the way that amusement parks do -- "Your wait from here is X minutes."


bci23

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Re: CMG - Chipotle
« Reply #21 on: August 12, 2015, 03:42:24 PM »
procuring high quality food, offering it at prices lower than the competition, and extremely fast service.

Ikea and Costco take that to an extreme with crazy cheap hot dogs.  Though I wouldn't say that the food is high quality or in the same price category as CMG.

CMG does food theatre well.  Everything other than the food makes the food taste more delicious- the decor, being able to see the food being prepared, etc.
One thing that McDonald's (which used to own CMG) does better than CMG is that McDonald's does breakfast and 24hr, so they utilize their rent better.  McD's does need additional equipment to handle breakfast, so that does take capital.

Quote
This seems like a formula that could be applied successful in other restaurant concepts.
It's generally very difficult to start new restaurant concepts.  Many successful restauranteurs fail when they try it.

When I think of a target Chipotle could go after i think about Subway. 12" subs at Subway cost as much as a chicken burrito at Chipotle these days and the food quality inst even in the same ballpark. Chipotle could put together a better sandwich offering than Subway with better food and lower prices IMO.

MrB

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Re: CMG - Chipotle
« Reply #22 on: November 01, 2015, 10:57:00 PM »
Chipotle shuts Seattle, Portland stores after E. coli outbreak

http://www.reuters.com/article/2015/11/02/us-chipotle-ecoli-idUSKCN0SQ2CE20151102

JayGatsby

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Re: CMG - Chipotle
« Reply #23 on: November 20, 2015, 12:19:07 PM »
I don't know exactly what the long-term value of Chipotle is but I doubt it's 20% less than it was a few weeks ago. I don't even remember which restaurants it was that had issues a few years ago? I think it was lettuce from taco bell?

Ate there yesterday. Tasted fine!

jawn619

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Re: CMG - Chipotle
« Reply #24 on: November 20, 2015, 12:53:20 PM »
I don't know exactly what the long-term value of Chipotle is but I doubt it's 20% less than it was a few weeks ago. I don't even remember which restaurants it was that had issues a few years ago? I think it was lettuce from taco bell?

Ate there yesterday. Tasted fine!

a few weeks ago was chipotle perfectly priced?

JayGatsby

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Re: CMG - Chipotle
« Reply #25 on: November 20, 2015, 01:15:06 PM »
a few weeks ago was chipotle perfectly priced?
My guess is it was either cheaper than it should have been or more expensive, but only time will tell.

Personally I think they have a lot more growth ahead of them even if they wiff completely on international. I've never seen people get so generally excited for a restaurant for such a long period of time, much less a restaurant with 2,000 locations.

gjangal

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Re: CMG - Chipotle
« Reply #26 on: November 20, 2015, 01:21:56 PM »
it can do 15% rev growth for some time still. plus operating leverage at existing stores . Imo this still has a decent runway. 1900 restaurants in the U.S. is not a lot. As mentioned in the posts above, international growth is still very new

DCG

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Re: CMG - Chipotle
« Reply #27 on: November 20, 2015, 01:55:35 PM »
Starting to look interesting to me. The eColi issues will pass. Stock isn't yet cheap by any means, but getting more attractive.

orthopa

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Re: CMG - Chipotle
« Reply #28 on: November 21, 2015, 03:18:07 PM »
Starting to look interesting to me. The eColi issues will pass. Stock isn't yet cheap by any means, but getting more attractive.

I agree, have always thought it was expensive but its trading at the same forward multiple as V which I think is a tad expensive but a great business.  This may eventually be a situation of getting a fair price of a great business, all assumptions have to be that growth continues.
« Last Edit: November 21, 2015, 03:24:28 PM by orthopa »

johnny

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Re: CMG - Chipotle
« Reply #29 on: November 21, 2015, 03:34:40 PM »
The eColi issues will pass.

Pun deliberate?

I'm still short, and happy to see the stock decline, but it does seem like a typical over-reaction to this kind of news. I haven't heard much chatter about this in ~real life~ and that is really the only way this has a substantial long term impact on the brand.

Their shophouse stores in LA continue to perform very well. That remains, I think, their best growth prospect and it is what I would suggest anybody in the stock monitor very closely.

« Last Edit: November 21, 2015, 05:05:45 PM by johnny »