Chipotle Mexican Grill, Inc. (CMG), Yum! Brands, Inc. (YUM): This Mexican Food Giant Is Still a Buy

Another restaurant player to consider is Brinker International, Inc. (NYSE:EAT), a casual-dining restaurant with its network in 32 countries and with more than 1,500 restaurants. The company is also innovating its menu with new items to attract more customers, and sees high potential in pizza and flatbreads. The company’s management has steered it well. Brinker is ahead of schedule in hitting its target of doubling its earnings-per-share figure achieved in 2010 in the upcoming fiscal year, which is sooner than expected by a year.

The company looks fairly valued with a trailing P/E of 20, and the good thing is that it pays a decent dividend that yields 2% on a payout ratio of 43%. So investors looking for exposure to this industry can also look to Brinker International, Inc. (NYSE:EAT).

Conclusion

Chipotle has done really well so far, and given its strategies I think that it will continue doing well. After all, who doesn’t like a tasty burrito and stock market returns? And Chipotle provides both.

Amal Singh has no position in any stocks mentioned. The Motley Fool recommends Chipotle Mexican Grill. The Motley Fool owns shares of Chipotle Mexican Grill.

The article This Mexican Food Giant Is Still a Buy originally appeared on Fool.com.

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