Chipotle Mexican Grill Stock Split Quiz
12 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What valuation metric is used to assess how much investors pay for a company's earnings growth?

  • Price-to-earnings growth (PEG) ratio (correct)
  • Forward P/E ratio
  • Return on investment (ROI) ratio
  • Price-to-sales ratio

Why does the author consider Chipotle stock unreasonably expensive?

  • Low growth potential
  • Stagnant earnings
  • High PEG ratio (correct)
  • Lack of store expansion

What do steady share repurchases by Chipotle contribute to in terms of growth?

  • Decrease in number of stores
  • Decrease in earnings
  • Increase in shareholder dividends
  • Increase in long-term earnings growth (correct)

Based on the content, why does the author advise being patient with Chipotle stock?

<p>To wait for a better buying opportunity (D)</p> Signup and view all the answers

What hypothetical conditions would make Chipotle stock a buy according to the author?

<p>$53 earnings per share and trading at 30 times earnings (C)</p> Signup and view all the answers

What is the author recommending regarding investing in Chipotle Mexican Grill at the moment?

<p>Wait for a better buying opportunity (C)</p> Signup and view all the answers

What is the purpose of Chipotle's 50-to-1 stock split?

<p>To make it easier for investors to accumulate shares of the stock (C)</p> Signup and view all the answers

How will Chipotle's current share price of $2,880 be affected by the 50-to-1 stock split?

<p>The share price will decrease to $57.60 (B)</p> Signup and view all the answers

Why do company employees typically like stock splits?

<p>It makes it easier for them to sell the equity they've acquired working for the company (D)</p> Signup and view all the answers

How does a stock split impact a company's fundamental valuation?

<p>It has no impact on the company's fundamental valuation (A)</p> Signup and view all the answers

What is the author's stance on Chipotle's stock split?

<p>The author is neutral on Chipotle's stock split (B)</p> Signup and view all the answers

What is the key reason why investors like stock splits?

<p>It makes it easier for them to accumulate shares of the stock (C)</p> Signup and view all the answers

More Like This

Menu de Chipotle en Español
11 questions
Chipotle Job Interview Questions
20 questions
Chipotle ERS Study Flashcards
3 questions
Use Quizgecko on...
Browser
Browser