MACROSLM MARKET INTELLIGENCEGLOBAL EQUITY RESEARCH · COMPANY REPORT
COMPANY DEEP DIVEChipotle Mexican Grill, Inc.
NYSE: CMG · Restaurants — Fast Casual · United States
Coverage note
As of 12 Jul 2026
Illustrative — not a recommendation
Market cap
$41.5B
Large-cap
P/E · TTM / FWD
27.9x / 25.5x
Premium to QSR
EV / EBITDA
19.2x
Above sector median
LTM revenue
$12.1B
▲ Mid-teens growth
Op. margin · FY24
16.9%
▲ +110 bps YoY

Best-in-class fast casual, compounding on units and throughput

Chipotle operates ~3,700 company-owned restaurants with no franchising, a rarity at its scale. The model pairs double-digit revenue growth with expanding restaurant-level and operating margins, funded internally and returned partly through buybacks. Digital is ~35% of sales, and "Chipotlanes" (drive-through digital pickup) lift new-unit returns.
WHAT DRIVES THE MODEL
  • Unit growth. Long runway toward a stated ~7,000 North American restaurants, most with Chipotlanes.
  • Throughput & pricing. Menu pricing power plus operational throughput drive same-store sales.
  • Company-owned. No franchising means full margin capture and brand control.
  • High returns. New units pay back quickly; growth is self-funded.
KEY FACTS
Restaurants (approx.)~3,700
FY2024 revenue$11,314M
FY2024 revenue growth+14.6%
FY2024 operating margin16.9%
FY2024 net income$1,534M
Digital % of sales~35%

Revenue compounding mid-teens with rising margins

REVENUE ($M) WITH OPERATING MARGIN LABEL
Fiscal yearRevenue ($M)GrowthOp. marginNet income ($M)
FY20228,635+14.4%13.4%899
FY20239,872+14.3%15.8%1,229
FY202411,314+14.6%16.9%1,534
LTM (mid-2026)12,140n/a~17%~1,450

Priced as a premium compounder

CMG trades at ~28x trailing and ~25x forward earnings and ~19x EV/EBITDA — a clear premium to mature QSR, justified by faster growth, self-funded expansion, and high returns on invested capital. The forward multiple sits below trailing, implying the market prices continued earnings growth.
MetricCMGRead
Market capitalization$41.5Blarge-cap
P/E — trailing27.9xpremium to QSR peers
P/E — forward25.5ximplies earnings growth
EV / EBITDA19.2xabove mature-restaurant median
LTM revenue$12.1B+mid-teens growth

Between mature QSR and hypergrowth small-caps

FAST-CASUAL & QSR COMPARABLES (approx., as of Jul 2026)
CompanyRev. growthP/E (TTM)EV/EBITDA
Chipotle (CMG)~14%27.9x19.2x
Cava Group (CAVA)~28%n.m.~55x
Wingstop (WING)~25%~75x~48x
Shake Shack (SHAK)~15%~85x~28x
Starbucks (SBUX)~5%~24x~15x
McDonald's (MCD)~5%~24x~17x
Darden (DRI)~6%~19x~13x
Peer median (ex-CMG)~15%~24x~28x

Bull and bear

BULL CASE
  • Unit runway. Path toward ~7,000 NA restaurants nearly doubles the base.
  • Margin expansion. Throughput, Chipotlanes, and pricing keep lifting operating margin.
  • Self-funded, high-ROIC growth with buybacks on top.
  • Digital moat. ~35% digital mix and loyalty deepen engagement.
BEAR CASE
  • Valuation. ~28x earnings leaves little room for a growth stumble.
  • Input & labor inflation can compress restaurant-level margin.
  • Law of large numbers. Sustaining mid-teens growth gets harder at scale.
  • Competition from Cava and other fast-casual entrants for share and talent.
Sources: Chipotle FY2022–FY2024 Forms 10-K (revenue, operating margin, net income); market data as of ~12 Jul 2026 (market cap $41.5B; P/E 27.9x TTM / 25.5x fwd; EV/EBITDA 19.2x; LTM revenue $12.1B). Peer multiples approximate and for context only. Illustrative deliverable — not a research recommendation or investment advice.