James Gaffigan Zachary Hylton Jordan Schwartz Nicholas Pycha Overview Founded1993 Colorado Industry fast casual food 1300 restaurants globally Restaurant chains in 35 states in US ID: 743426
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Slide1
Chipotle Mexican Grill
Company AnalysisJames GaffiganZachary HyltonJordan SchwartzNicholas PychaSlide2
Overview
Founded:1993, ColoradoIndustry: fast casual food1,300 restaurants globallyRestaurant chains in:35 states in U.SDistrict of Columbia
Ontario, Canada
Europe
(Zack's, 2012
)Slide3
Overview
Serves:Burritos and burrito bowlsTacosSalads
Food with Integrity Policy
Fresh Ingredients
local produce
Naturally raised animals
(Zack's, 2012
)Slide4
Investment Decision
Not a good long-term investmentFierce competition: Taco Bell and QdobaOvervalued stock price/ lack of dividendsCurrent legal issues
(
Mussi
, 2012)Slide5
Jordan Schwartz
SWOT AnalysisChipotle vs. Taco BellSustainable resourcesFood with Integrity vs. Cantina BellSlide6
SWOT Analysis
StrengthsSustainable resources: Food with IntegrityMarketing programsMinimal growth
Weaknesses
Irregularities in work authorization documents
Increased labor costs
(EBSCO, 2012)
& DATAMONITOR: Yum! Brands, Inc. (2010, September 2)Slide7
SWOT Analysis
OpportunitiesFocus on expansionThreatsFierce competition
Increasing costs
(EBSCO, 2012)Slide8
James Gaffigan
Competitive factorsBusiness in the newsSlide9
Competitive Factors
Current and potential earningsMergers and acquisitionsAny development of a new product
News
(How the Market Works, 2012)Slide10
Business in the News
Rounding price of foodLegal issuesFinancial prospects disclosed incorrectlySubstantial drop in stock price
(
Torrisi
, 2012) (Olsen, 2012)Slide11
Zachary
HyltonFinancial AnalysisSignificant factorsGross Profit
Net Income
P/E Ratio
Earnings Per Share
(Zack's, 2012)Slide12
Gross Profit
(Zack's, 2012)Slide13
Net Income
(Zack's, 2012)Slide14
P/E Ratio
(zacks.com)Slide15
Earnings per Share
(Zack's, 2012)Slide16
Stock Prices
(yahoo.finance.com)Slide17
Dividends
CompanyYieldAnnual Div.
Payout
Ratio
Chipotle
-0-
-0-
-0-
Yum Brands1.93%
$1.34
.36
(zacks.com)Slide18
Nick Pycha
Analyst's Evaluations Standard and Poor’sZacks Investment
Conclusion: Our recommendationSlide19
Standard & Poor’s
Current recommendation: HoldRisk assessment: Medium riskValues CMG stock price at $278.20 per shareOvervalued by $58.20 or 17.3%
(Standard & Poor’s, 2012)Slide20
Zacks Investment Research
Zacks Rank: 3- HoldRecommendation: NeutralFailed to meet estimationsEarnings per share
Revenue
(Zack's, 2012)Slide21
Conclusions
Fierce competitionOvervalued stock price/ lack of dividendsCurrent legal issues
Recommendation: YUM Brands