Chipotle Mexican Grill, Inc. (CMG), Buffalo Wild Wings (BWLD): Noodles Paying Down Debt Instead of Buying Growth

During these times, dividend players must cut payouts. Growth stories slow the growth down…just in case things don’t pan out. Some companies even dilute shareholder value by issuing new shares. In contrast, these debt-free companies are consistent winners in growing shareholder value. EPS can be a good metric to try and gauge this.

CMG EPS Diluted TTM data by YCharts

Conclusion

Noodles & Company is positioning itself for greatness by paying off debt now. The company is following in the footsteps of many great growth companies in the restaurant sector. I discuss the company’s valuation in this article; long story short, I believe it’s priced a tad high right now. I’m hoping short-term speculators sell out soon so that the price comes back down to a reasonable entry point. At the right price, this one is worth buying and holding for a long time.

Jon Quast has no position in any stocks mentioned. The Motley Fool recommends BJ’s Restaurants, Buffalo Wild Wings, Chipotle Mexican Grill, Inc. (NYSE:CMG), and Panera Bread. The Motley Fool owns shares of BJ’s Restaurants, Buffalo Wild Wings, Chipotle Mexican Grill, and Panera Bread. Jon is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Noodles Paying Down Debt Instead of Buying Growth originally appeared on Fool.com and is written by Jon Quast.

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