To The Moon

Excluding the pre-market increase of this financial report, since 2022,$Chipotle Mexican Grill(CMG)$Share prices fell 16.5%, possibly due to concerns about rising costs and labor shortages. In the past six months,$Chipotle Mexican Grill(CMG)$This is basically the trend.

For a legend that has made a return of 3100% since its IPO in 2006, look bullish$Chipotle Mexican Grill(CMG)$It can be described as the main theme. No, this financial report once again provided a bullish argument, and also responded with a 6% increase before the market. Here, first summarize the highlights of the financial report:

Comparable sales rose 15.2% in the fourth quarter, beating popular expectations of 14.8% and a slight increase from 15.1% in the third quarter. At the same time, the guidance predicts that the same-store sales will increase in the middle-high single digits in the first quarter

Sales of digital games increased by 3.8%, accounting for 41.6% of total sales in the fourth quarter

Restaurant profit margins rose 70 basis points year-on-year to 20.2% in the quarter, compared with an expected 20.7%. The improvement was largely due to the leverage of higher menu prices, partially offset by higher costs of goods due to higher wages and freight rates.

Labour costs as a percentage of revenue were 26.4% of sales, compared with 25.4% a year ago, and food and beverage and packaging costs accounted for 31.6% of sales, compared with 31.0% a year ago.

Seventy-eight new restaurants opened this quarter, including 67 restaurants including Chipotlane.

On the whole, due to rising prices, strong digital sales and limited supply of plant sausages,$Chipotle Mexican Grill(CMG)$The high single-digit growth in the same-store sales guidelines in the first quarter can be achieved. Same-store sales rose about 5pc in January as the Omicron variant and bad weather affected results, management said. Last December, the company raised menu prices by 4%, and the total increase in the first quarter of this year was about 10%.

According to the guidelines, the profit margin of the catering industry may drop slightly to about 22% in the first quarter of this year from 22.3% in the same period last year, because the increase in wages and commodity prices (mainly beef and freight) is partially offset by the sales leverage effect and the increase in menu prices. Personally, I think that with the easing of commodity inflation, it can reach 23% in February this year. And, as sales leverage and price increases are offset by labor and commodity inflation, profit margins at the restaurant level will be basically flat in 2022.

The above is an immediate update on the financial report, because$Chipotle Mexican Grill(CMG)$Has no business in mainland China. For community tiger friends, understanding such a fast food chain brand needs to break the ice. Personally, I think we can start from two points: 1. Product and brand 2. Rise and valuation.

1 cheap fast food chain brand focusing on healthy organic food

Describe Chipotle's market position in one sentence: the healthiest in fast food and the cheapest in healthy food.

Chipotle's main concept is "FOOD WITH INTEGRITY" (which roughly means making food with integrity). Chipotle said that the ingredients he chose were organic food, vegetables were grown locally, meat was raised in pasture, and the whole production process was environmentally friendly and sustainable.

At the same time, Chipotle has achieved sufficient weight, which is one of the reasons why Chipotle is very popular. The main health card ensures that the per capita consumption is only seven or eight dollars, and you can eat in 3-5 minutes, which creates the advantage of brand expansion.

2 Four times in four years, the daily valuation is the highest in catering companies

$Chipotle Mexican Grill(CMG)$It went public in 2006 with an issue price of US $22, and its current share price exceeds 1,500, which is a legendary big bull stock. In the plain 20Times of food and beverage track, getting 50-60 times of PE every day, although it has its own excellent tradition, what is more worthy of investors' exploration is why.

As of the fourth quarter, the company operated 2,966 stores. In its guidance, management said it believed there could be at least 7,000 Chipotle restaurants in North America, up from the previous target of 6,000. Chipotle could open 100 to 200 restaurants a year for the foreseeable future without feeling crowded. This is the simplest logic to see one more catering company.

At this point in writing, I hope to open your right$Chipotle Mexican Grill(CMG)$The concern. Whether as an investor or a foodie.