It’s been a weak period for the Mexican eatery business with over 3700 stores primarily in the US, with their last result coming in very mildly below expectations in terms of same-store sales growth, which measures the performance of their existing store network (i.e. excluding the impact of new restaurants). This is a growth business, on a growth multiple and growth has clearly been out of favour.
- While an earnings multiple of 40x FY25 will scare some, consensus earnings growth of ~16% per annum is the offset. If we did not already own Chipotle, we would be buying here.
MM is bullish CMG US ~$US51.66
Add To Hit List
