Chipotle Mexican Grill (CMG: 104.99 +1.01 +0.97%) has remained largely unruffled by the recent economic slowdown. The company is well-positioned to expand rapidly while generating improved earnings, margins and returns on invested capital.
With a strong balance sheet, consistent earnings and healthy cash flow, we think the stock provides relative safety and consistent growth. The company’s results have been stable relative to many of its peers, with same-store sales that appear to have held up over time.
Moreover, the company’s Food With Integrity program provides a significant competitive advantage in the fast-casual segment. As such, we have an Outperform recommendation on the stock.
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