Analyzing Granite City Food & Brewery (OTCMKTS:GCFB) and Chipotle Mexican Grill (OTCMKTS:CMG)

Granite City Food & Brewery (OTCMKTS:GCFB) and Chipotle Mexican Grill (NYSE:CMG) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Earnings and Valuation

This table compares Granite City Food & Brewery and Chipotle Mexican Grill’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Granite City Food & Brewery $133.84 million N/A -$7.37 million N/A N/A
Chipotle Mexican Grill $4.86 billion 4.25 $176.55 million $9.06 82.40

Chipotle Mexican Grill has higher revenue and earnings than Granite City Food & Brewery.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Granite City Food & Brewery and Chipotle Mexican Grill, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Granite City Food & Brewery 0 0 0 0 N/A
Chipotle Mexican Grill 7 12 14 0 2.21

Chipotle Mexican Grill has a consensus target price of $660.80, indicating a potential downside of 11.48%. Given Chipotle Mexican Grill’s higher possible upside, analysts plainly believe Chipotle Mexican Grill is more favorable than Granite City Food & Brewery.

Profitability

This table compares Granite City Food & Brewery and Chipotle Mexican Grill’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Granite City Food & Brewery N/A N/A N/A
Chipotle Mexican Grill 4.08% 19.78% 10.11%

Insider and Institutional Ownership

95.0% of Chipotle Mexican Grill shares are held by institutional investors. 26.3% of Granite City Food & Brewery shares are held by insiders. Comparatively, 2.2% of Chipotle Mexican Grill shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Granite City Food & Brewery has a beta of -3.71, meaning that its share price is 471% less volatile than the S&P 500. Comparatively, Chipotle Mexican Grill has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500.

Summary

Chipotle Mexican Grill beats Granite City Food & Brewery on 9 of the 10 factors compared between the two stocks.

About Granite City Food & Brewery

Granite City Food & Brewery, Ltd. operates casual dining restaurants in the United States. The company's upscale casual dining restaurants include the Granite City Food & Brewery restaurant that offers various menu items and handcrafted beers, as well as other regional craft beers; and the Cadillac Ranch All American Bar & Grill restaurant that offers American cuisine, including homemade meatloaf and pasta dishes. As of December 26, 2017, it operated 32 Granite City restaurants in 13 states; and 4 Cadillac Ranch restaurants in 4 states. The company was founded in 1997 and is headquartered in Bloomington, Minnesota. Granite City Food & Brewery, Ltd. is a subsidiary of Concept Development Partners LLC.

About Chipotle Mexican Grill

Chipotle Mexican Grill, Inc., together with its subsidiaries, operates Chipotle Mexican Grill restaurants. As of December 31, 2018, it operated 2,491 restaurants, including 2,452 Chipotle restaurants in the United States, 37 Chipotle restaurants internationally, and two non-Chipotle restaurants. The company was founded in 1993 and is headquartered in Newport Beach, California.

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