WHERE GREATNESS STARTS
Chipotle vs S&P 500, TradingView
Chipotle outperformed the S&P 500 by over 5,000% at its peak in 2024.
Restaurants aren’t supposed to outperform the greatest technology bull runs, nor the most exciting names in the bull cycle.
Yet, Chipotle did.
This actually happens more often than you think…
The biggest winners almost always share the same handful of factors (most investors never think to look for them.)
Scaling economics moving through a proven concept
Attractive returns over the cost of capital
Industry-leading KPIs
With proper financial management and just the right mix of network effects, these ingredients can turn a tiny company into a must-have in your portfolio.
This isn’t a Chipotle post though.
I recently came across a company with economics that reminded me of an early-stage Chipotle.
Now here’s what really changed my mind on it:
The business is already carrying ROIC and margins similar to today’s Chipotle
All while operating at less than 15% of its scale…
So I wondered:
What happens if this business reaches Chipotle’s scale (already on its way)
That’s what we’ll cover today.
Here’s the framework that convinced me to buy.
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