Tuesday, June 14, 2016

McDonald's & Chipotle Performance

Well it took almost 5 years but shares of Chipotle Mexican Grill(CMG) have now given you the same return as their former parent McDonalds(MCD).

It's very close to 10 years since McDonalds spun-off it's stake in Chipotle(fall 2006).  However, don't be fooled by the chart below. Since the spin-off shares of CMG have returned investors with an approximate 600% return. MCD's shareholders meanwhile have seen an approximate 250% increase in value(not the value menu of course). That figure doesn't include dividends which are normally supersized so the return is actually higher than the stated number.

Shares of MCD currently trade 7.4% below it's recent all time high of $131.96. Meanwhile shares of CMG trade 48.7% below it's all time high of $758.18 reached back in 2015.

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