📊 CMG Key Takeaways
Is Chipotle Mexican Grill Inc. (CMG) a Good Investment?
Chipotle demonstrates fortress-like balance sheet strength with zero long-term debt and exceptional free cash flow generation ($471M, 15.3% margin), providing financial flexibility and shareholder returns. While revenue growth is modest at 5.4% YoY and working capital metrics are tight, the combination of profitable operations (9.8% net margin), strong operating cash flow, and debt-free capital structure positions the company to navigate competitive pressures and reinvest in growth.
Chipotle shows strong core fundamentals with double-digit operating and net margins, high returns on equity and assets, and robust free cash flow generation. Its balance sheet is conservative with no long-term debt and adequate liquidity, which supports resilience and continued reinvestment. The main limitation is that profit growth has recently slowed materially versus revenue growth, so execution and margin sustainability matter more from here.
Why Buy Chipotle Mexican Grill Inc. Stock? CMG Key Strengths
- Zero long-term debt with pristine balance sheet (Debt/Equity: 0.00x)
- Exceptional free cash flow generation of $471M with 15.3% FCF margin
- Solid profitability with 9.8% net margin and 12.9% operating margin
- Strong operating cash flow of $651.4M supporting sustainable business model
- Respectable revenue growth of 5.4% YoY in mature restaurant industry
- Strong profitability with 16.2% operating margin and 12.9% net margin
- Excellent financial health with zero long-term debt and solid liquidity
- High-quality cash generation with $2.11B operating cash flow and $1.45B free cash flow
CMG Stock Risks: Chipotle Mexican Grill Inc. Investment Risks
- Current ratio of 0.92x and Quick ratio of 0.88x indicate tight short-term liquidity
- Modest EPS growth of only 2.7% YoY suggests limited earnings expansion
- Low ROA of 3.4% indicates underutilized asset base relative to asset size
- Revenue growth rate (5.4%) suggests market saturation and competitive pressures
- Cash position of $246.6M represents only 2.8% of total assets
- Net income growth has nearly stalled despite revenue growth, which may signal margin pressure or rising costs
- Relatively modest cash balance compared with total liabilities increases reliance on continued steady operating cash flow
- Restaurant fundamentals remain exposed to labor, food, and occupancy cost inflation
Key Metrics to Watch
- Same-store sales growth and unit expansion rates
- Operating cash flow sustainability and working capital trends
- Free cash flow maintenance relative to capital expenditure levels
- Net margin trends amid labor cost inflation
- Current ratio improvement toward 1.0x+ for comfort
- Operating margin trend
- Free cash flow growth
Chipotle Mexican Grill Inc. (CMG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
CMG Profit Margin, ROE & Profitability Analysis
CMG vs Consumer Sector: How Chipotle Mexican Grill Inc. Compares
How Chipotle Mexican Grill Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Chipotle Mexican Grill Inc. Stock Overvalued? CMG Valuation Analysis 2026
Based on fundamental analysis, Chipotle Mexican Grill Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Chipotle Mexican Grill Inc. Balance Sheet: CMG Debt, Cash & Liquidity
CMG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Chipotle Mexican Grill Inc.'s revenue has grown significantly by 58% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.89 reflects profitable operations.
CMG Revenue Growth, EPS Growth & YoY Performance
CMG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.9B | $302.8M | $0.23 |
| Q3 2025 | $2.8B | $359.3M | $0.28 |
| Q2 2025 | $3.0B | $359.3M | $0.32 |
| Q1 2025 | $2.7B | $359.3M | $0.26 |
| Q3 2024 | $2.5B | $291.6M | $0.23 |
| Q2 2024 | $2.5B | $291.6M | $0.25 |
| Q1 2024 | $2.4B | $291.6M | $10.50 |
| Q3 2023 | $2.2B | $158.3M | $9.20 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Chipotle Mexican Grill Inc. Dividends, Buybacks & Capital Allocation
CMG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Chipotle Mexican Grill Inc. (CIK: 0001058090)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CMG
What is the AI rating for CMG?
Chipotle Mexican Grill Inc. (CMG) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CMG's key strengths?
Claude: Zero long-term debt with pristine balance sheet (Debt/Equity: 0.00x). Exceptional free cash flow generation of $471M with 15.3% FCF margin. ChatGPT: Strong profitability with 16.2% operating margin and 12.9% net margin. Excellent financial health with zero long-term debt and solid liquidity.
What are the risks of investing in CMG?
Claude: Current ratio of 0.92x and Quick ratio of 0.88x indicate tight short-term liquidity. Modest EPS growth of only 2.7% YoY suggests limited earnings expansion. ChatGPT: Net income growth has nearly stalled despite revenue growth, which may signal margin pressure or rising costs. Relatively modest cash balance compared with total liabilities increases reliance on continued steady operating cash flow.
What is CMG's revenue and growth?
Chipotle Mexican Grill Inc. reported revenue of $3.1B.
Does CMG pay dividends?
Chipotle Mexican Grill Inc. does not currently pay dividends.
Where can I find CMG SEC filings?
Official SEC filings for Chipotle Mexican Grill Inc. (CIK: 0001058090) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CMG's EPS?
Chipotle Mexican Grill Inc. has a diluted EPS of $0.23.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CMG a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Chipotle Mexican Grill Inc. has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CMG stock overvalued or undervalued?
Valuation metrics for CMG: ROE of 12.6% (sector avg: 18%), net margin of 9.8% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy CMG stock in 2026?
Our dual AI analysis gives Chipotle Mexican Grill Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CMG's free cash flow?
Chipotle Mexican Grill Inc.'s operating cash flow is $651.4M, with capital expenditures of $180.3M. FCF margin is 15.3%.
How does CMG compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 9.8% (avg: 8%), ROE 12.6% (avg: 18%), current ratio 0.92 (avg: 1.5).