CHIPOTLE

Take Chipotle for example. Chipotle is a truly wonderful franchise that was once a Wall Street darling before its stock was driven down close to 50% after an E. coli outbreak landed 21 customers in the hospital. Chipotle originally became a household name and hot stock by satisfying growing consumer preference for healthy offerings, fast casual dining, & customization. As a recent college graduate, I am part of the demographic that Chipotle appeals most to. As a customer, I can assure you that while analysts might comp Chipotle to Mcdonalds, Yum! Brands, & even Panera, Chipotle's product has no real competition when it comes to the combination of quality, taste, price, and experience. One of Warren Buffett's favorite qualitative assessments of a company is to ask whether or not a well-capitalized competitor could harm it. With the strong brand and share of its customers' mind that Chipotle enjoys, this is extremely unlikely... And, as with all franchises, Chipotle's success translates..