It's interesting to show the increasing Roic, but it would be more interesting to know why. (Inflation?, efficiency?, customer sss?) Many compounders had trends like this and ultimately customer slow downs changes these numbers big.
Unit economics businesses like retailers and restaurants can be so interesting. If the blueprint works, which it does for Chipotle, then the only task is expanding and duplicating what already works in different places.
Hi Daan, thank you for the insightful analysis of CMG. I do have one question, though. At the end of the fifth paragraph, you write: ‘And it does this all with not a single dollar in debt on the balance sheet.’ When I look at the 2024 balance sheet, it does indeed say 0 for long-term debt. But when I look at capital leases, it says 4.262,78 which is 4,26 billion dollars. Although that is indeed an easily manageable amount for CMG, it is certainly not ‘not a single dollar’. I would appreciate your thoughts on this.
Hi Guido, you are entirely right! Apparently, in some enthusiasm, I wrote "not a single dollar in debt," while in reality, this is pretty much never actually the case.
Like you say, it is easily manageable and not a thesis changer, but you are right! Thanks for pointing this out.
It's interesting to show the increasing Roic, but it would be more interesting to know why. (Inflation?, efficiency?, customer sss?) Many compounders had trends like this and ultimately customer slow downs changes these numbers big.
Unit economics businesses like retailers and restaurants can be so interesting. If the blueprint works, which it does for Chipotle, then the only task is expanding and duplicating what already works in different places.
True!
Hi Daan, thank you for the insightful analysis of CMG. I do have one question, though. At the end of the fifth paragraph, you write: ‘And it does this all with not a single dollar in debt on the balance sheet.’ When I look at the 2024 balance sheet, it does indeed say 0 for long-term debt. But when I look at capital leases, it says 4.262,78 which is 4,26 billion dollars. Although that is indeed an easily manageable amount for CMG, it is certainly not ‘not a single dollar’. I would appreciate your thoughts on this.
Hi Guido, you are entirely right! Apparently, in some enthusiasm, I wrote "not a single dollar in debt," while in reality, this is pretty much never actually the case.
Like you say, it is easily manageable and not a thesis changer, but you are right! Thanks for pointing this out.