If You Invested $10,000 In Chipotle Mexican Grill Stock 5 Years Ago, Here’s How Much You’d Have Today

Chipotle Mexican Grill (NYSE:CMG) has been one of the best performing restaurant stocks over the past 15 years. While early investors made a lot of money even with a small investment, new investors should still be encouraged by Chipotle’s recent business performance and its impact on the stock’s performance.

Earnings per share has jumped 540% in the last five years. This massive increase in profitability helped drive the stock price up 346%, which would have turned a $10,000 investment into $44,670. Management’s focus on profitable expansion of the store base means that inventory depletion is unlikely to be over.

Chipotle can continue to grow

Chipotle just released another impressive first quarter report. Revenue jumped 14% year-over-year, while adjusted profit rose 27%. Management sees all year round comparable restaurant sales growing in the mid-to-high single-digit range, which should translate into double-digit growth in revenue and earnings.

Management’s objective is to generate profitable growth for shareholders. That’s why investors should be excited about the company’s plan to accelerate store openings.

The company opened 47 new restaurants in the first quarter, bringing its total footprint to nearly 3,500 stores in the United States, Canada, the United Kingdom, France and Germany. The company plans to open between 285 and 315 new locations this year, en route to its long-term goal of having 7,000 restaurants in North America.

Chipotle has proven itself to be a leading restaurant company. It survived a major crisis in 2015 related to foodborne illnesses associated with its restaurants and, more recently, the pandemic and high inflation.

If a restaurant can overcome these challenges, there’s a good chance it will continue to reward shareholders for years to come.

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John Ballard has no position in any of the stocks mentioned. The Motley Fool posts and recommends Chipotle Mexican Grill. The Motley Fool has a disclosure policy.

If You Invested $10,000 In Chipotle Mexican Grill Stock 5 Years Ago, Here’s How Much You’d Have Today was originally published by The Motley Fool