Chipotle Mexican Grill, Inc. (NYSE:CMG)

CAPS Rating: 3 out of 5

A fast-casual restaurant chain, Chipotle Mexican Grill focuses on fresh and organic ingredients, tempting diners with gigantic burritos, salads, and more.

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Player Avatar yonkmember (50.92) Submitted: 8/18/2012 9:35:59 PM : Outperform Start Price: $297.58 CMG Score: +9.07

No debt. Cash, short-term investments and long-term investments of 700M. FCF usually higher than net income. Market is far from saturation and with the recent pullback, CMG is looking attractively priced for the mid to long term. EV/FCF is somewhat high (~2x that of MCD) but with EPS growth expected in the low teens, this number is not frothy. I am usually a dividend investor, and this is a pick of mine for growth into a dividend payer with a long time horizon. DISCLOSURE: Will initiate a position within 2 weeks of this pick.

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