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Category: Mcdonalds (MCD) and Chipotle Mexican Grill (CMG)
Date: 24 June 2020 Stock price of Chipotle $1039.16 Stock price of Mcdonalds: $186.62 So battle of the quick service restaurants. Who is the winner between Mcdonald's and Chipotle Mexican Grill. And if you had to buy on of these two stocks now, which one would you be better off going with if its long term returns you are after.
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Mcdonalds also has a far greater global reach and brand name and therefore if we have to decide between Mcdonalds (MCD) or Chipotle (CMG) now.. We would pick Mcdonalds as our winner "
More About McDonald's (MCD)
The Company franchises and operates McDonald’s restaurants, which serve a locally-relevant menu of quality food and beverages in 119 countries. Of the 38,695 restaurants at year-end 2019, 36,059 were franchised, which is 93% of McDonald's restaurants. McDonald’s franchised restaurants are owned and operated under one of the following structures - conventional franchise, developmental license or affiliate.
Quick facts about Mcdonalds (MCD):
Quick facts about Mcdonalds (MCD):
- Mcdonalds is listed on the New York Stock Exchange under share code ticker: MCD
- Market capital of Mcdonalds: $147.809 billion
- Number of Mcdonalds restaurants: 38 695
- Number of employees: 205 000
- Revenues in 2019: $21.07 billion
- Earnings per share in 2019: $7.88
- Dividends paid per share in 2019: $4.73
- Number of Mcdonalds shares in issue: 764.9 million
- Cash on balance sheet: $898.5 million
- Stockholders deficit: -$9.2 billion
- PE ratio of Mcdonalds: 23.7
More About Chipotle Mexican Grill (CMG)
Chipotle Mexican Grill, Inc., a Delaware corporation, together with its subsidiaries (“Chipotle”, “we”, “us”, or “our”) operates Chipotle Mexican Grill restaurants, which feature a relevant menu of burritos, burrito bowls (a burrito without the tortilla), tacos, and salads. We are cultivating a better world by serving responsibly sourced, classically cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives. We are passionate about providing a great guest experience and making our food more accessible to everyone while continuing to be a brand with a demonstrated purpose. Steve Ells, founder and executive chairman, first opened Chipotle with a single restaurant in Denver, Colorado in 1993. Over 25 years later, our devotion to seeking out the very best ingredients, raised with respect for animals, farmers, and the environment, remains at the core of our commitment to Food With Integrity. As of December 31, 2019, we operated 2,580 Chipotle restaurants throughout the United States, 39 international Chipotle restaurants, and three non-Chipotle restaurants.
Quick facts about Chipotle (CMG)
Quick facts about Chipotle (CMG)
- Chipotle is listed on the New York Stock Exchange under share code ticker: CMG
- Chipotle has 83 000 employees, 6000 salaried workers and 77 000 hourly workers
- Revenues in 2019: $5.586 billion
- Earnings per share in 2019: $12.28
- Shares in issue: 28.295 million
- Cash on balance sheet: $480.626 million
- Stockholders equity in Chipotle: $1.683 billion
- Stockholders equity per share: $59.48
- PE ratio of Chipotle: 84.47
Mcdonald's (MCD) stock vs Chipotle Mexican Grill (CMG) stock
The image below shows the stock price performance of Mcdonalds (MCD) and Chipotle Mexican Grill (CMG) over the last 3 years. And while they are both active in the quick service restaurants (QSR) sector their stock prices tell two totally different stories. With the stock of Mcdonalds being far more stable but providing less returns compared to the stock of Chipotle that has been far more volatile over the last 3 years but provided much greater returns over the three year period.
So if one had to buy one of these two quick service restaurant brands which one would it be? Which one is most likely to offer superior stock price returns based on their current stock price and their financial results. Chipotle has some stockholders equity, around $60 a stock, this while Mcdonalds is sitting with a stockholders deficit of close to -$9.3 billion. Chipotle has the far higher PE ratio of the two stocks. Mcdonalds dividend yield is also stronger and their stock price has run up far less than that of Chipotle over the last 3 years. Mcdonalds also has a far greater global reach and brand name and therefore if we have to decide between Mcdonalds (MCD) or Chipotle (CMG) now.. We would pick Mcdonalds as our winner.