Rule #1 Finance Blog

With Investor Phil Town


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    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:

  • Revenue
  • Net operating Income and EPS
  • Equity
  • 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