If You Invested $1,000 In Chipotle Mexican Grill Stock 5 Years Ago, Here’s How Much You’d Have Today
Chipotle Mexican Grill (NYSE: CMG) has been a perennial market favorite, and its excitement has grown following its recent 50-for-1 stock split. It operates a successful model of developing healthy Mexican-style dishes made with fresh ingredients, and it targets an affluent clientele that is resistant to inflationary conditions.
Despite its high valuation, Chipotle stock continues to climb, proving that the company can boast a price-to-earnings ratio of 66 because its business performance is simply reliable. How much money would you have if you invested $1,000 in Chipotle stock five years ago?
The leader in fast-casual dining
Chipotle has consistently reported strong increases in revenue, comparable sales, and profits, and that trend continued during the early years of the pandemic, when similar restaurant chains were struggling. The chain offers a compelling pricing model with affordable food for its high-end customers, even as they cut back on luxury spending (and certainly when they don’t).
This trend was fully evident in the first quarter of 2024. Revenue increased 14% in the quarter, driven by both new stores and solid comparable sales growth of 7%. Operating margin increased from 15.5% to 16.3%.
It’s no surprise that investors love Chipotle stock, and if you had invested $1,000 five years ago, you would have $4,200 today.
What will happen in the next five years? We can never know for sure, but there doesn’t seem to be any reason to worry about Chipotle’s ability to maintain its momentum. The company is opening new stores at a steady pace, but still sees plenty of opportunities to expand its stores and diversify further into international waters. At the same time, it continues to innovate with new dishes and more efficient processes to satisfy hungry customers and drive higher growth in existing stores.
If you invest $1,000 today, you should see that investment multiply over the long term.
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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has a position in Chipotle Mexican Grill and recommends the company. The Motley Fool has a disclosure policy.
If You Invested $1,000 in Chipotle Mexican Grill Stock 5 Years Ago, Here’s How Much You’d Have Today was originally published by The Motley Fool
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