How Does This Restaurant Chain Operate?
Chipotle Mexican Grill runs a fast-casual restaurant chain centered on made-to-order Mexican-inspired food. The business is built around company-operated locations that serve customers directly through in-restaurant and digital ordering. Revenue is primarily generated from food and beverage sales across its restaurant base. The model depends on consistent throughput, disciplined food execution, and ongoing investment in new and existing locations.
Are Margins and Cash Flow Holding Steady?
FundamentalsFor 2025, reported in USD, revenue was about USD 11.9 billion, with EBIT of roughly USD 1.9 billion and net income of USD 1.5 billion. Revenue grew 5.4% year over year, alongside a trailing gross margin of 30.62% and operating margin of 16.23%.
Cash ended the period at about USD 350.5 million. Depreciation and amortization totaled roughly USD 361.4 million, and the cash flow proxy was about USD 1.8 billion, reflecting operating earnings after tax plus depreciation and amortization, net of capital spending assumptions used in that proxy.
Is The Market Price Above Fair Value?
DCF / MultiplesAt USD 32.31, the stock trades above the central DCF estimate of USD 25.64, while still below the upper estimate of USD 37.67 and above the lower estimate of USD 15.87. Headline pricing also aligns with a 26.62 P/E and 17.65 EV/EBITDA on a trailing basis.
Profitability With Limited Cushion
TakeawayThe business is profitable, but cash on hand is not large. Durability depends on keeping store economics consistent as it reinvests. The current price leans on a better-