Chipotle Mexican Grill, Inc. - (CMG)
CMG is hitting an all-time high these days and after eating their tasty food, I can understand why. Good food at high prices is always a surefire way to make your stock a winner, until your fickle customers become cost conscience.
CMG, 5/29/2007
My favorite dish is the chicken burrito bowl w/ sour cream and the red hot sauce. :)
Update
I posted about this stock back in May 2007 when it was trading at $82 or so and now, in 2019, it’s way higher. I love the food just as much now as I did back then. I’ve had my share of burrito bowls over the years!
CMG did run into a few ‘food safety’ problems over the years. They were hit with a doubly whammy of making people sick, not once but twice. That took the wind out of the share price and she bottomed out somewhere around $260 at the beginning of 2018.
Fast forward to June 2019 and she’s trading at $700!!! WOW, just wow.
CMG, 6/9/2019
I’m not bummed that this one got away, I’m glad that a Mexican fast food business, with better ingredients, can actually grow into a multi-billion dollar company.
Still, CMG had their share of problems. There was a time when their food processing was making people sick and their share price suffered bad. People were thinking it would go to zero!
In the end they fixed the problem and started adding new food dishes that cater to the changing tastes of us consumers. I used to only get Chipotle when I was in NYC or on a trip because there weren’t any Chipotle places near me, but now they opened one up in the mall so I usually get a burrito bowl once or twice a year now.
Would I passively invest in CMG? That’s a good question. It’s trading at 1,270 in August 2020 and it has no dividends. It looks to pricey for me and the fact it has no dividends means it’s not stable enough for me to invest in a food business.
These are the thoughts that go through my mind now, are the stable money makers where I know my risk is low and the upside pretty high.