Here's another update from Lee re: his Chipotle research:
Thanks for the feedback as always, Phil Town. Here's what I'm up to.
I requested the information from Chipotle Investor Relations (email below). I also looked at McDonald's annual report, since they are/were a major investor. Chipotle was part of "McDonald's Ventures", along with Boston Market. So, a way for McDonald's to use their money in other segments of the market.
A recent announcement said that McDonald's is ending some benefits to Chipotle (as planned) because their ownership is decreasing. This has apparently pushed the stock down, but I view it as good news. Just waiting for the green arrows now at a lower price.
I expect people will copy them, just like people copied
McDonald's. But they won't have the recipes, quality, and BAG of
Chipotle's CEO, so they will remain cheap knock-offs. Also, Chipotle
has a 500 restaurant head start, which is a decent jump.
My gut feel is that the first 6 – 8 years of Chipotle were chaotic,
with very fast growth and bumpy financials. They have a lot more
experience, maturity, and scale now, so in a sense are a different
company. So, I'm not sure how relevant that older data is …
I'll let you know if/when I hear back from Chipotle, and try to answer whether they need to stay Ricky Biz.
Here's the letter Lee sent to Chipotle to request SEC filings. This is a good template for you to follow.
Sent to firstname.lastname@example.org 7/10/06 11:10 EST
Is it possible to get financial data for Chipotle for the period 1996 to 2005? The 2005 annual report only goes back to 2001.
I am specifically looking for 10 years of:
- Net operating Income and EPS
- Long term debt
- Free Cash Flow
- ROIC (derived from above)
I am an individual investor (and also a big fan!), but I'm working on
behalf of an "investment club" of large and small investors.
Thanks for any help. regards,
– lee robie
Phil Town is an investment advisor, hedge fund manager, 3x NY Times Best-Selling Author, ex-Grand Canyon river guide, and former Lieutenant in the US Army Special Forces. He and his wife, Melissa, share a passion for horses, polo, and eventing. Phil’s goal is to help you learn how to invest and achieve financial independence.