Skip to Content

Chipotle Mexican Grill Inc CMG

Rating as of

Morningstar’s Analysis

Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price


5-Star Price


Economic Moat


Capital Allocation


Chipotle Serves Robust Second-Quarter Results Despite Food and Wage Inflation; Shares Look Expensive

Sean Dunlop Equity Analyst

Analyst Note

| Sean Dunlop |

Wide-moat Chipotle posted strong 2021 second-quarter earnings, with robust comparable store sales, or CSS, growth (18.3% on a two-year stack), new unit openings (6.9% annual growth), and 24.5% restaurant-level margins (its best since 2015) underpinning a modest earnings beat. After digesting management's commentary, particularly considering the incrementality of a return to dine-in traffic, sustained traction of the firm's loyalty program, and 40% incremental operating margins, we anticipate raising our fair value estimate to $1,300, up from $1,200 previously. While Chipotle boasts one of the most compelling growth narratives in our restaurant coverage, market prices continue to look frothy, with shares trading at a 20% premium to our revised fair value estimate at market close, and up further after hours.

Read Full Analysis

Company Profile

Business Description

Chipotle Mexican Grill is the largest fast-casual chain restaurant in the United States, with systemwide sales approaching $6 billion in 2020. The Mexican concept is entirely company-owned, with a footprint of 2,850 stores heavily indexed to the United States, though the firm maintains a small presence in Canada, the U.K., France, and Germany. Chipotle sells burritos, burrito bowls, tacos, quesadillas, and beverages, with a selling proposition built around competitive prices, high-quality food sourcing, speed of service, and convenience. The company generates its revenue entirely from restaurant sales and delivery fees.

610 Newport Center Drive, Suite 1300
Newport Beach, CA, 92660
T +1 949 524-4000
Sector Consumer Cyclical
Industry Restaurants
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 88,000


Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.