5 Restaurant Stocks to Sink Your Teeth Into

Restaurant Stock #4 – Chipotle Mexican Grill (CMG)

It is well known that McDonald’s (MCD) is firing on all cylinders. What may not be known is that
McDonald’s well-timed divestiture of Chipotle Mexican Grill (CMG) at prices near $100 per share in
2007 contributed to MCD’s stellar success.

Doing so allowed MCD to focus on its value menu strategy, while funding research and development of the now famous coffee strategy. Was the sale
a vote against Chipotle’s future? Even though shares of CMG plummeted in the wake of the divestiture, MCD’s move had nothing to do with the belief
that CMG would not be a huge success.

The discount in CMG share price ended last fall. Since that time, shares have been rising, as CMG’s own focus on hearty meals in a tortilla or bowl
provided consumers much-needed wallet relief. Instead of the fancy steakhouse, more and more people are enjoying a Chipotle steak burrito.

If you are looking for growth, you have found it in CMG. I would buy the stock that Mickey D’s sold, and I rate CMG a B or buy.

NEXT: Restaurant Stock #5