Chipotle Mexican Grill (CMG) has remained largely unruffled
by the current slowdown, highlighting the company’s
robust business model. The company is well-positioned
to expand rapidly while generating
improved earnings, margins, and returns on invested
capital.
With a strong balance sheet, consistent
earnings, and healthy cash flow, we think the stock
provides relative safety and moderate growth in a
turbulent environment. The company’s results have
been stable relative to many of its peers.
Moreover,
the company’s new program provides a significant
competitive advantage in the fast-casual segment.
As such, we maintain an Outperform rating on the
stock.Zacks Investment Research
