u/Puzzleheaded-Ear-290 ·
Reddit — r/ValueInvesting
· March 15, 2026 at 14:51
· ⬆ 22 pts
· 💬 58 comments
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Currently sitting at a 28 P/E ratio with a price per share of around $32-33, Chipotle is now the cheapest it has been since 2015. The company still produces strong free cash flow over the last couple of years. Increasing (but stabilizing/slowing) revenue, Profit margins, opporating income, EDITA, and EPS have flattened. Chipotle is using cash flows to do more stock buybacks it looks like, and opening new locations. Return on Equity in the last years has hovered in the 30s-40s. They have a lot of cash on hand, more than McDonald's actually as of now, although I am sure that is a one off thing.
However, they need to fix the inconsistent service across their restaurants, some customers get a full bowl, others get half of a bowl. They also should lower prices in the short term, and they shouldn't be open longer than 9PM, it is dead between 9-11 which is probably wasting money in thkse two hours. I personally love Chipotle, everytime I go at 12, it's busy, their rewards points don't expire unlike other fast food chains, and my Chipotle always gives me double chicken for the price of a regular, which is essentially two meals for me for $9.47 after tax. They have the potential to do good, they just need to fix some things.
What are your thoughts?