CHIPOTLE MEXICAN GRILL $677.60 (New York symbol CMG; TSINetwork Rating: Speculative) (303-595-4000; www.chipotle.com; Shares outstanding: 31.0 million; Market cap: $21.1 billion; No dividends paid) offers only naturally raised meat that comes from animals that are raised humanely, never given antibiotics or hormones and fed a pure vegetarian diet.
Chipotle had a total of 1,783 outlets at the end of 2014 and plans to add 190 to 205 more this year. However, its strict adherence to its food standards could make continued expansion increasingly difficult.
That’s because demand for natural and humanely raised livestock is growing, especially in the U.S., where fast-food chains ranging from Dunkin’ Donuts to McDonald’s are switching over. In addition, new chains using naturally raised meat, like Five Guys and Shake Shack, are expanding rapidly.
Chipotle is a hold.
