Thread by @RamBhupatiraju

As much as I love the Tech growth Cos, I enjoy being a LT shareholder in Chipotle $CMG even more (since 2014).🌯

One of the most Peter Lynchian stocks you can find in the US.

Checks so many of the boxes

✔️Simple concept to experience and understand (at a Unit/Corporate level)

✔️Customer loved and with some pricing power

✔️Steady Unit & Rev growth growth per year

✔️Great Unit economics at Restaurant level

✔️Growth funded with internal cash flows

✔️Decent Corporate level Margins

✔️Clean balance sheet with no dilution

✔️Good Management that is investing in all the right places - Digital, Menu innovation, Branding/Marketing, Drive thrus....

With all that playing out over the long-term, the main things that need to be watched in the interim are

-Any meaningful competition in its niche and changing consumer preferences.

-Any major customer pushback to menu changes or price hikes.

-Any sustained impact from new COVID variants.

-Any more Food/Health related issues isolated to Chipotle (like in 2015-18) and the PR/Operational responses to that.

-How they are managing the common Restaurant factors related to Food costs & Employee retainment/satisfaction.

The 4Q and FY2021 results looked decent.

Good to see the LT store count expectation in North America being taken up from 6000 to 7000 locations, currently at 2966 locations).

Also the continued growth in Digital & that more than 80% of the new restaurants having a Chipotlane.

This is not a recommendation for the stock, but just a reminder of Peter Lynch's teachings that there are good long-term gains to be made in Cos making products that we use/like, but we need to ensure that the Business economics are sound and that it has durable growth ahead.

All this Chipotle talk is making me hungry now. Where's that burrito?