Chipotle Mexican Grill(CMG) The Motley Fool·2025-01-20 13:00Core Viewpoint - Chipotle Mexican Grill is preparing to report its fourth-quarter and full-year earnings for 2024, with Scott Boatwright now firmly established as CEO, raising questions about the company's future performance and investor expectations [1][2]. Company State - Chipotle has become a notable success in the restaurant industry, demonstrating that healthy meals can be both profitable and appealing, with over 3,600 locations primarily in the U.S. and ongoing expansion plans [3]. - The unexpected departure of former CEO Brian Niccol was a surprise for shareholders, but his reforms had previously addressed health issues and introduced innovations like online ordering and Chipotlane [4]. - Boatwright's elevation to CEO is seen as a continuation of Niccol's legacy, as he has been with the company since 2017 and contributed to its recent successes, with a goal of expanding to 7,000 restaurants in North America [5]. International Expansion - Chipotle is also expanding its footprint in Europe and has opened its first location in Kuwait, which is crucial for achieving a size comparable to major competitors like McDonald's and Starbucks [6]. Ongoing Challenges - Despite a nearly 30% stock increase over the past year, there are concerns about potential overvaluation, as Chipotle's price-to-earnings (P/E) ratio stands at 54, which is high compared to historical trends [7]. - The company reported 1.2 billion, a 20% increase year-over-year, indicating continued strength but raising questions about whether performance justifies the current valuation [9]. Future Outlook - Boatwright's leadership is expected to maintain Chipotle's status as a buy in 2025, with the upcoming Q4 earnings report likely to set the tone for the year [10][12]. - The high P/E ratio may pressure the company, leading some investors to consider waiting for a pullback before increasing their shares [11].