Chipotle Mexican Grill (NYSE: CMG) is one of 22 publicly-traded companies in the “Quick Service Restaurants” industry, but how does it contrast to its peers? We will compare Chipotle Mexican Grill to similar businesses based on the strength of its earnings, analyst recommendations, risk, profitability, institutional ownership, dividends and valuation.
Risk and Volatility
Chipotle Mexican Grill has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Chipotle Mexican Grill’s peers have a beta of 0.53, suggesting that their average share price is 47% less volatile than the S&P 500.
Earnings and Valuation
This table compares Chipotle Mexican Grill and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Chipotle Mexican Grill||$4.31 billion||$397.78 million||66.28|
|Chipotle Mexican Grill Competitors||$3.06 billion||$846.52 million||29.71|
Chipotle Mexican Grill has higher revenue, but lower earnings than its peers. Chipotle Mexican Grill is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Insider & Institutional Ownership
90.0% of Chipotle Mexican Grill shares are held by institutional investors. Comparatively, 79.8% of shares of all “Quick Service Restaurants” companies are held by institutional investors. 2.0% of Chipotle Mexican Grill shares are held by insiders. Comparatively, 16.8% of shares of all “Quick Service Restaurants” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Chipotle Mexican Grill and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Chipotle Mexican Grill||3.17%||10.65%||7.38%|
|Chipotle Mexican Grill Competitors||6.90%||12.59%||9.54%|
This is a breakdown of recent ratings for Chipotle Mexican Grill and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Chipotle Mexican Grill||4||22||9||0||2.14|
|Chipotle Mexican Grill Competitors||242||1343||1655||81||2.47|
Chipotle Mexican Grill presently has a consensus target price of $388.10, indicating a potential upside of 23.53%. As a group, “Quick Service Restaurants” companies have a potential upside of 1.77%. Given Chipotle Mexican Grill’s higher possible upside, equities analysts plainly believe Chipotle Mexican Grill is more favorable than its peers.
Chipotle Mexican Grill peers beat Chipotle Mexican Grill on 8 of the 13 factors compared.
Chipotle Mexican Grill Company Profile
Chipotle Mexican Grill, Inc. (Chipotle), together with its subsidiaries, operates Chipotle Mexican Grill restaurants. The Company’s Chipotle Mexican Grill restaurants serve a menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads. As of December 31, 2016, the Company managed its operations and restaurants based on 11 regions. As of December 31, 2016, the Company operated 2,198 Chipotle restaurants throughout the United States, as well as 29 international Chipotle restaurants, and it also had 23 restaurants in operation in other non-Chipotle concepts. As of December 31, 2016, 29 of its restaurants were located outside of the United States, with 17 in Canada, six in the United Kingdom, five in France and one in Frankfurt, Germany. The Company sells gift cards, which do not have an expiration date. The Company categorizes its restaurants as end-caps (at the end of a line of retail outlets), in-lines (in a line of retail outlets), free-standing or other.
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