Chipotle Rated Strongly by P/B Growth Investor Model

Chipotle Mexican Grill, Inc. earns high marks with a rating of 77%. This report indicates growth potential, signaling a positive outlook for investors considering Chipotle stocks.

Date: 03-02-2025

AI Rating: 7

Overview of Chipotle Mexican Grill, Inc. (CMG)

Chipotle Mexican Grill, Inc. has received a strong rating of 77% according to the P/B Growth Investor model, which highlights substantial potential for future growth in the company. This rating places Chipotle in a strong position, as a score above 80% typically indicates investor interest.

Ratings Breakdown

The analysis identified several factors that the stock passed, giving it favorable indicators:

Book/Market Ratio: PASS
Return on Assets: PASS
Cash Flow from Operations to Assets: PASS
Cash Flow from Operations to Assets vs. Return on Assets: PASS
Return on Assets Variance: PASS
Sales Variance: PASS
Advertising to Assets: PASS

However, there are two significant areas where Chipotle did not meet expectations:

Capital Expenditures to Assets: FAIL
Research and Development to Assets: FAIL

Despite these failures in capital expenditures and research and development, the PASS ratings indicate that overall, the company's financial fundamentals show strong potential for growth.

Investment Implications

Investors might view the 77% rating as a positive sign, suggesting that the company is well-managed and could provide favorable returns. The failure in capital expenditures and R&D could lead to future concerns as investment in these areas is crucial for long-term growth.

Stocks: CMG