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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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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with 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 using traditional methods and served in a unique atmosphere.
The company is committed to using high-quality real ingredients, classic cooking techniques and distinctive interior design to serve customers. As of Dec 31, 2023, the company owned and operated more than 3,400 restaurants across the United States, Canada, the U.K., France and Germany.
The company’s growth is significantly driven by its digital platform. It has enhanced its capabilities by digitizing restaurant kitchens, expanding partnerships with third-party delivery services, and increasing the number of Chipotlanes (drive-through format for customer pick-up of digital orders). Digital sales, encompassing revenue generated through the Chipotle website, Chipotle app, or third-party delivery aggregators, which also includes revenue deferrals linked to Chipotle Rewards, constituted 37.4% of food and beverage revenue in 2023, compared to 39.4% in 2022 and 45.0% in 2021. The company has facilitated convenient digital ordering through enhancements to the Chipotle app and website, including unlimited customization, contactless delivery, and group ordering.
The company utilizes multiple marketing channels, including national television, digital marketing, social media, fundraising, events and sponsorships to reach consumers. Third-party service providers mostly provide delivery services.
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 typically expire if an account is inactive for 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 April 2014 would be worth $5,322.99, or a gain of 432.30%, as of April 9, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 180.91% and the price of gold went up 71.37% over the same time frame.
Analysts are anticipating more upside for CMG.
Shares of Chipotle have outperformed the industry in the year-to-date period. The company is benefiting from its digital efforts, Chipotlane add-ons and marketing initiatives. This along with strength in digital sales and new restaurant openings have been driving the company. Also, a strong comparable restaurant sales growth bodes well. For 2024, Chipotle anticipates comps growth in the mid-single-digit range, driven by its transaction growth and strong comps growth trends. It intends to focus on the stage-gate process and leverage digital programs to expand access and convenience. Earnings estimates for 2024 have increased in the past 30 days, depicting analysts’ optimism regarding the stock’s growth potential. However, ongoing commodity and wage inflation are concerning.
Shares have gained 10.10% over the past four weeks and there have been 3 higher earnings estimate revisions for fiscal 2024 compared to none lower. 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
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with 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 using traditional methods and served in a unique atmosphere.
The company is committed to using high-quality real ingredients, classic cooking techniques and distinctive interior design to serve customers. As of Dec 31, 2023, the company owned and operated more than 3,400 restaurants across the United States, Canada, the U.K., France and Germany.
The company’s growth is significantly driven by its digital platform. It has enhanced its capabilities by digitizing restaurant kitchens, expanding partnerships with third-party delivery services, and increasing the number of Chipotlanes (drive-through format for customer pick-up of digital orders). Digital sales, encompassing revenue generated through the Chipotle website, Chipotle app, or third-party delivery aggregators, which also includes revenue deferrals linked to Chipotle Rewards, constituted 37.4% of food and beverage revenue in 2023, compared to 39.4% in 2022 and 45.0% in 2021. The company has facilitated convenient digital ordering through enhancements to the Chipotle app and website, including unlimited customization, contactless delivery, and group ordering.
The company utilizes multiple marketing channels, including national television, digital marketing, social media, fundraising, events and sponsorships to reach consumers. Third-party service providers mostly provide delivery services.
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 typically expire if an account is inactive for 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 April 2014 would be worth $5,322.99, or a gain of 432.30%, as of April 9, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 180.91% and the price of gold went up 71.37% over the same time frame.
Analysts are anticipating more upside for CMG.
Shares of Chipotle have outperformed the industry in the year-to-date period. The company is benefiting from its digital efforts, Chipotlane add-ons and marketing initiatives. This along with strength in digital sales and new restaurant openings have been driving the company. Also, a strong comparable restaurant sales growth bodes well. For 2024, Chipotle anticipates comps growth in the mid-single-digit range, driven by its transaction growth and strong comps growth trends. It intends to focus on the stage-gate process and leverage digital programs to expand access and convenience. Earnings estimates for 2024 have increased in the past 30 days, depicting analysts’ optimism regarding the stock’s growth potential. However, ongoing commodity and wage inflation are concerning.
Shares have gained 10.10% over the past four weeks and there have been 3 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.