Independent Research, US Dominant Players, Investment Talk

Investment Talk

Independent Research, US Dominant Players

Investment Talk is for readers who wish to learn about companies that are potentially outside of their own circle of research, as well as those who are longing to become part of a community of like-minded investors and learn more about investment research. I would describe myself as a long-term investor who typically takes a 3Y to 5Y outlook, before reassessing once that period matures. I follow the adage that one should research, reach a conclusion, and then verify and continue to hold so long as the thesis remains intact. My own investing style is one that seeks to find dominant players within their respective market who have shown signs of monopoly or oligopolistic behaviour, unlikely to be disrupted, in tandem with discovering market disruptors who have a high likelihood of disrupting their respective market. Equally (and weighted accordingly) I seek to discover more nuanced, misunderstood, situations with a shorter time frame.

Equity Bottom-Up

Chipotle Mexican Grill / Equity Bottom-Up

<ul><li>Chipotle has notoriously been somewhat of a perpetually <em>“expensive”</em> stock if you take an optical approach.</li><li>Today it trades at ~49x forward earnings; on par with the 10Y mean.</li><li>On a price-to-free cash flow basis, the 58x multiple is slightly below to 10Y mean of 62x, but still relatively expensive. </li></ul>

Chipotle has notoriously been somewhat of a perpetually “expensive” stock if you take an optical approach.Today it trades at ~49x forward earnings; on par with the 10Y mean.On a price-to-free cash flow basis, the 58x multiple is slightly below to 10Y mean of 62x, but still relatively expensive. 

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>In Q4 FY2023, Chipotle Mexican Grill, Inc.</li><li>(Chipotle) reported a 15% YoY increase in sales, reaching $2.5 billion, driven by an 8.4% comp sales growth on the back of a 7% transaction growth.</li><li>Over the fiscal year, sales increased 14% to reach $9.9 billion backed by a 7.9% comp sales growth.</li></ul>

In Q4 FY2023, Chipotle Mexican Grill, Inc.(Chipotle) reported a 15% YoY increase in sales, reaching $2.5 billion, driven by an 8.4% comp sales growth on the back of a 7% transaction growth.Over the fiscal year, sales increased 14% to reach $9.9 billion backed by a 7.9% comp sales growth.

Chipotle Mexican Grill: Pricing Strategies to Counter Wage Increases & Other Major Developments - Financial Forecasts

<ul><li>Chipotle delivered a mixed set of results in its most recent result with revenues falling short of Wall Street expectations but above-par earnings.</li><li>The rise in Chipotle’s overall revenue was driven by an upsurge in comparable restaurant sales and also new restaurant openings.</li><li>Lately, Chipotle announced its foremost development pact with Alshaya Group for opening several restaurants in the region of Middle East.</li></ul>

Chipotle delivered a mixed set of results in its most recent result with revenues falling short of Wall Street expectations but above-par earnings.The rise in Chipotle’s overall revenue was driven by an upsurge in comparable restaurant sales and also new restaurant openings.Lately, Chipotle announced its foremost development pact with Alshaya Group for opening several restaurants in the region of Middle East.

Chipotle Mexican Grill: Efficiency Boost From Increasing Restaurant-Level Automation To Boost Future Margins? – Key Drivers

<ul><li>It was a successful quarter for Chipotle Mexican Grill, reporting an all-around beat.</li><li>The company’s quarterly sales were $2.4 billion and it retained about 80% of digital sales and has recovered almost 80% of in-restaurant sales.</li><li>We give Chipotle Mexican Grill a 'Hold' rating with a revised target price.</li></ul>

It was a successful quarter for Chipotle Mexican Grill, reporting an all-around beat.The company’s quarterly sales were $2.4 billion and it retained about 80% of digital sales and has recovered almost 80% of in-restaurant sales.We give Chipotle Mexican Grill a 'Hold' rating with a revised target price.

Chipotle Mexican Grill Inc.: Improved Digital Capabilities & A 6

Tortilla Mexican Grill PLC / Equity Bottom-Up

<ul><li>Tortilla Mexican Grill is a small cap (market cap ~£48M) listed on the UK AIM exchange and is somewhat illiquid.</li><li>The chain boasts the largest portfolio of stores across the country in its subcategory, outranking its closest competitor by a factor of 5x.</li><li>As a recent IPO, and one that trades in a somewhat illiquid manner, I urge caution to those reading. These are merely my preliminary notes on the company.</li></ul>

Tortilla Mexican Grill is a small cap (market cap ~£48M) listed on the UK AIM exchange and is somewhat illiquid.The chain boasts the largest portfolio of stores across the country in its subcategory, outranking its closest competitor by a factor of 5x.As a recent IPO, and one that trades in a somewhat illiquid manner, I urge caution to those reading. These are merely my preliminary notes on the company.

United States

Chipotle Mexican Grill, Inc. owns and operates quick serve Mexican restaurants. The Company manages restaurants throughout the United States.

Chipotle Mexican Grill (CMG US)

Is Chipotle Squeezing too Hard?

Chipotle has notoriously been somewhat of a perpetually “expensive” stock if you take an optical approach. Today it trades at ~49x forward...

Investment Talk

Chipotle Mexican Grill: Pricing Strategies to Counter Wage Increases & Other Major Developments - Financial Forecasts

In Q4 FY2023, Chipotle Mexican Grill, Inc. (Chipotle) reported a 15% YoY increase in sales, reaching $2.5 billion, driven by an 8.4% comp sales...

Baptista Research

Chipotle Mexican Grill: Efficiency Boost From Increasing Restaurant-Level Automation To Boost Future Margins? – Key Drivers

Chipotle delivered a mixed set of results in its most recent result with revenues falling short of Wall Street expectations but above-par...

Baptista Research

Chipotle Mexican Grill Inc.: Improved Digital Capabilities & A 6

It was a successful quarter for Chipotle Mexican Grill, reporting an all-around beat. The company’s quarterly sales were $2.4 billion and it...

Baptista Research

MEX: Tortilla Mexican Grill

The chain boasts the largest portfolio of stores across the country in its subcategory, outranking its closest competitor by a factor of 5x.

Investment Talk