WallStSmart

Chipotle Mexican Grill Inc (CMG)vsYum! Brands Inc (YUM)

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Smart Verdict

WallStSmart Research — data-driven comparison

Chipotle Mexican Grill Inc generates 42% more annual revenue ($12.42B vs $8.72B). YUM leads profitability with a 25.4% profit margin vs 11.4%. YUM appears more attractively valued with a PEG of 1.97. YUM earns a higher WallStSmart Score of 65/100 (C+).

CMG

Buy

54

out of 100

Grade: C-

Growth: 5.3Profit: 8.0Value: 4.3Quality: 4.5
Piotroski: 4/9Altman Z: 2.47

YUM

Buy

65

out of 100

Grade: C+

Growth: 7.3Profit: 8.5Value: 4.0Quality: 4.5
Piotroski: 2/9Altman Z: 0.92
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CMG.

YUMSignificantly Overvalued (-79.7%)

Margin of Safety

-79.7%

Fair Value

$88.51

Current Price

$147.68

$59.17 premium

UndervaluedFair: $88.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMG1 strengths · Avg: 10.0/10
Return on EquityProfitability
64.5%10/10

Every $100 of equity generates 65 in profit

YUM4 strengths · Avg: 9.8/10
Operating MarginProfitability
32.2%10/10

Strong operational efficiency at 32.2%

EPS GrowthGrowth
131.6%10/10

Earnings expanding 131.6% YoY

Debt/EquityHealth
-1.6410/10

Conservative balance sheet, low leverage

Profit MarginProfitability
25.4%9/10

Keeps 25 of every $100 in revenue as profit

Areas to Watch

CMG4 concerns · Avg: 3.5/10
PEG RatioValuation
2.004/10

Expensive relative to growth rate

P/E RatioValuation
34.5x4/10

Premium valuation, high expectations priced in

Price/BookValuation
19.4x4/10

Trading at 19.4x book value

EPS GrowthGrowth
-1.3%2/10

Earnings declined 1.3%

YUM4 concerns · Avg: 3.0/10
PEG RatioValuation
1.974/10

Expensive relative to growth rate

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.922/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : CMG

The strongest argument for CMG centers on Return on Equity.

Bull Case : YUM

The strongest argument for YUM centers on Operating Margin, EPS Growth, Debt/Equity. Profitability is solid with margins at 25.4% and operating margin at 32.2%. Revenue growth of 12.3% demonstrates continued momentum.

Bear Case : CMG

The primary concerns for CMG are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.46 is elevated, increasing financial risk.

Bear Case : YUM

The primary concerns for YUM are PEG Ratio, Return on Equity, Piotroski F-Score.

Key Dynamics to Monitor

CMG profiles as a value stock while YUM is a mature play — different risk/reward profiles.

CMG carries more volatility with a beta of 0.96 — expect wider price swings.

YUM is growing revenue faster at 12.3% — sustainability is the question.

CMG generates stronger free cash flow (463M), providing more financial flexibility.

Bottom Line

YUM scores higher overall (65/100 vs 54/100), backed by strong 25.4% margins and 12.3% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Chipotle Mexican Grill Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Chipotle Mexican Grill, Inc., often known simply as Chipotle, is an American chain of fast casual restaurants in the United States, United Kingdom, Canada, Germany, and France, specializing in tacos and Mission burritos that are made to order in front of the customer.

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Yum! Brands Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.

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