Think it’s too late to buy Chipotle stock? Here is the biggest reason why there is still time

At first glance, one could easily assume they missed the boat with Chipotle (CMG 2.26%). The fast-casual restaurant chain soared following the announcement of a 50-for-1 stock split. Additionally, the stock has risen more than 120-fold since its IPO to an adjusted $0.44 per share in 2006.

However, its footprint of more than 3,500 locations probably doesn’t mean the stock has yet to rise. Here’s how investors can still profit despite the chain’s massive growth.

Why Chipotle

Chipotle stood out by successfully launching a healthy fast food concept. The company has figured out how to offer delicious, reasonably priced, naturally produced fast food, a concept that most other chains have struggled to do as well.

An added benefit is that Chipotle has succeeded in areas with populations under 40,000 people. This gives the company the ability to meet its expectations that it can grow to 7,000 locations in North America alone.

Moreover, he did not have to sacrifice growth to achieve this goal. In the second quarter of 2024, it announced that it had added 262 restaurants in the last 12 months, meaning it will take several more years of growth at its current rate to reach 7,000 locations.

Additionally, strong financials indicate continued prosperity. In the first half of 2024, revenue of $5.7 billion was up 16%. Comparable store sales also rose 7% in Q1 and 11% in Q2, indicating that it is maintaining growth in a sluggish economy. Such growth resulted in net income of $815 million for the first two quarters of 2024, an annual increase of 29%.

After all, its European growth story has only just begun. So far, there are only 27 locations in the UK, France and Germany. However, McDonald’s operates more than 40,000 globally, which indicates how far a restaurant stock can go by succeeding internationally.

Ultimately, Chipotle has come a long way. However, given its comparable-store sales growth, expanded footprint and international outlook, Chipotle may have only just begun to realize its full potential.