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Here's How Much a $1000 Investment in Chipotle Mexican Grill Made 10 Years Ago Would Be Worth Today
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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Chipotle Mexican Grill (CMG - Free Report) ten years ago? It may not have been easy to hold on to CMG for all that time, but if you did, how much would your investment be worth today?
Chipotle Mexican Grill's Business In-Depth
With that in mind, let's take a look at Chipotle Mexican Grill's main business drivers.
A Delaware corporation, Chipotle Mexican Grill, together with its subsidiaries operates quick-casual and fresh Mexican food restaurant chains. The company was founded in 1993 by Steve Ells who started with a single restaurant in Denver, CO. The company offers a focused menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads. Chipotle restaurants feature free-range, hormone-free pork, natural chicken and other meat products cooked through traditional methods and served in a unique atmosphere. Chipotle classifies its restaurants as end-caps (at the end of a line of retail chains), in-lines (in a line of retail chains), free-standing units and others.
Chipotle, being one of the most recognized fast-casual Mexican restaurant chains in the United States, had a good share of negative publicity throughout 2016 due to an issue of food-borne illnesses that surfaced toward 2015-end. As a safety measure, the company was forced to close several outlets. In order to chalk out a viable business strategy, Chipotle discarded its former co-CEO model and appointed former Yum! Brands' executive Brian Niccol as the CEO.
The company is committed to using high-quality real ingredients, classic cooking techniques and distinctive interior design to serve customers. As of Mar 31, 2022, the company operated more than 3,014 restaurants across the United States, Canada, the U.K., France and Germany.
Chipotle’s marketing strategy shifted from a promotion driven decentralized approach in 2017 to a more central model designed to generate higher consumer awareness and attract guests. The company utilizes e multiple marketing channels, including national television, digital marketing, social media, fundraising, events and sponsorships to reach consumers. Delivery services are mostly made by third party service providers.
In 2018, Chipotle launched a loyalty program called Chipotle Rewards, which provides customers with the opportunity to earn bonus points or free food. Earned rewards generally expire one to six months after they are issued, and points generally expire if an account is inactive for a period of six months.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Chipotle Mexican Grill a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in January 2013 would be worth $5,426.67, or a 442.67% gain, as of January 17, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 171.56% and the price of gold went up 9.43% over the same time frame.
Looking ahead, analysts are expecting more upside for CMG.
Shares of Chipotle have outperformed the industry in the past six months. The company benefits from its digital efforts, Chipotlane add-ons and marketing initiatives. This along with strength in digital sales, rise in menu prices, new restaurant openings and higher restaurant-level operating margin have been driving the company. Also, a solid financial position with no debt bodes well. Chipotle continues to focus on the stage-gate process and leverage digital programs to expand access and convenience. Earnings estimates for 2023 have increased in the past 30 days, depicting analysts optimism regarding the stock growth potential. However, coronavirus related woes persists. This along with supply chain challenges, elevated wage inflation and expenses associated with new menus and openings remain headwinds.
The stock has jumped 7.74% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2022; the consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Chipotle Mexican Grill Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Chipotle Mexican Grill (CMG - Free Report) ten years ago? It may not have been easy to hold on to CMG for all that time, but if you did, how much would your investment be worth today?
Chipotle Mexican Grill's Business In-Depth
With that in mind, let's take a look at Chipotle Mexican Grill's main business drivers.
A Delaware corporation, Chipotle Mexican Grill, together with its subsidiaries operates quick-casual and fresh Mexican food restaurant chains. The company was founded in 1993 by Steve Ells who started with a single restaurant in Denver, CO. The company offers a focused menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads. Chipotle restaurants feature free-range, hormone-free pork, natural chicken and other meat products cooked through traditional methods and served in a unique atmosphere. Chipotle classifies its restaurants as end-caps (at the end of a line of retail chains), in-lines (in a line of retail chains), free-standing units and others.
Chipotle, being one of the most recognized fast-casual Mexican restaurant chains in the United States, had a good share of negative publicity throughout 2016 due to an issue of food-borne illnesses that surfaced toward 2015-end. As a safety measure, the company was forced to close several outlets. In order to chalk out a viable business strategy, Chipotle discarded its former co-CEO model and appointed former Yum! Brands' executive Brian Niccol as the CEO.
The company is committed to using high-quality real ingredients, classic cooking techniques and distinctive interior design to serve customers. As of Mar 31, 2022, the company operated more than 3,014 restaurants across the United States, Canada, the U.K., France and Germany.
Chipotle’s marketing strategy shifted from a promotion driven decentralized approach in 2017 to a more central model designed to generate higher consumer awareness and attract guests. The company utilizes e multiple marketing channels, including national television, digital marketing, social media, fundraising, events and sponsorships to reach consumers. Delivery services are mostly made by third party service providers.
In 2018, Chipotle launched a loyalty program called Chipotle Rewards, which provides customers with the opportunity to earn bonus points or free food. Earned rewards generally expire one to six months after they are issued, and points generally expire if an account is inactive for a period of six months.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Chipotle Mexican Grill a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in January 2013 would be worth $5,426.67, or a 442.67% gain, as of January 17, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 171.56% and the price of gold went up 9.43% over the same time frame.
Looking ahead, analysts are expecting more upside for CMG.
Shares of Chipotle have outperformed the industry in the past six months. The company benefits from its digital efforts, Chipotlane add-ons and marketing initiatives. This along with strength in digital sales, rise in menu prices, new restaurant openings and higher restaurant-level operating margin have been driving the company. Also, a solid financial position with no debt bodes well. Chipotle continues to focus on the stage-gate process and leverage digital programs to expand access and convenience. Earnings estimates for 2023 have increased in the past 30 days, depicting analysts optimism regarding the stock growth potential. However, coronavirus related woes persists. This along with supply chain challenges, elevated wage inflation and expenses associated with new menus and openings remain headwinds.
The stock has jumped 7.74% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2022; the consensus estimate has moved up as well.