Three Questions for Chipotle Mexican Grill, Inc. (CMG)

What’s more, the rising cost of ingredients has given the chain the opportunity to focus more on efficiency as a driver to maintain healthy margins. As a result, once the smoke clears and food-cost increases wane, Chipotle will emerge a leaner, more effective moneymaking machine.

3. How are those expansion plans coming along?
Finally, I’d like to know how the company’s steady expansion is progressing.

Specifically, after opening 48 new locations in the first quarter, Chipotle Mexican Grill, Inc. (NYSE:CMG) management told us they remain confident in their ability to deliver at the high end of their previous guidance of opening between 165 and 180 new restaurants by the end of 2013.

Of course, Chipotle can’t keep up with Yum! Brands’ torrid growth rate — remember, Yum! opened 315 new locations internationally last quarter, and remains on track to open at least 700 new locations in China alone by the end of 2013, which should bring its total number of global restaurants close to 40,000 by the end of this year between Pizza Hut, KFC, and Taco Bell.

Still, Chipotle is just fine operating with a much smaller store base at just over 1,450 restaurants, and the company also recently announced lease agreements to open four more of its up-and-coming ShopHouse Southeast Asian Kitchen concept restaurants, which could very well mark the beginning of another hugely popular brand for Chipotle shareholders.

While I’d love to hear management’s comments on how big they envision ShopHouse could eventually become, remember that there are currently more than 1,500 similar, privately held Panda Express restaurants across the U.S. with which Chipotle’s new brand could compete.

Foolish takeaway
In the end, I’m still convinced Chipotle Mexican Grill, Inc. (NYSE:CMG) is well positioned to achieve significant growth for years down the road, and answers to these three questions Thursday should help determine how well shareholders will be rewarded in the process.

The article 3 Questions for Chipotle Mexican Grill originally appeared on Fool.com and is written by Steve Symington.

Fool contributor Steve Symington has no position in any stocks mentioned. The Motley Fool recommends Chipotle Mexican Grill and Panera Bread. The Motley Fool owns shares of Chipotle Mexican Grill and Panera Bread.

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