Chipotle Stock: How To Find & Own America's Greatest Opportunities

Core Insights - Chipotle Mexican Grill has shown significant stock performance, particularly during bull markets, with an initial public offering at $22 in January 2006 and reaching $154, indicating strong market leadership [1] - The company experienced a sharp correction during the bear market from October 2007 to March 2009 but resumed growth with substantial earnings-per-share growth in subsequent quarters [2] - Chipotle's stock has undergone multiple corrections and basing periods, emphasizing the importance of having rules and a sound system to avoid premature selling during these fluctuations [3] Fundamental Analysis - Prior to a significant buy point, Chipotle announced a $100 million stock buyback, indicating confidence in its stock value [4] - The company achieved an average annual earnings-per-share growth rate exceeding 40% over the previous three years, with recent quarters showing EPS growth rates of +50%, +49%, and +83% [4] - Chipotle's pretax margins reached new highs at 13%, and mutual fund ownership increased from 220 to 332 over the previous three quarters, reflecting growing institutional interest [4] - The company has maintained cash flow averaging 80% more than earnings per share over the last three years, showcasing strong financial health [4]