Chuckwagon of the Triple P

By Roger Hudson - July 2, 2012 | Tickers: CMG, JACK, M, YUM | 0 Comments

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The Chipotle Mexican Grill (NYSE: CMG), chuckwagon of the Triple P*, parked its wagon recently in Spokane, Washington. With cooking fires burning on the corner of Division and E. Cataldo Ave, this fast-food restaurant arrived to deliver healthy food locally, and to do the Triple P thing - make a Profit while caring for Planet and People.

With a One-World Triple-P-Rating of TP-331(7) [3 out of 3 for growing Natural Capital (caring for Planet), 3 out of 3 for growing Social Capital (caring for People), and a 1 out of 3 for growing Economic Capital (potential Profit), giving the single-digit sustainability rating of (7) out of a possible 9 (3+3+1=7)], this is a company not to be ignored by the consumer and investor concerned to factor sustainability into their buying and investing lifestyles. It's commitment to triple P fundamentals across the range of its operation makes it a standout when compared to competing fast food restaurant chains like McDonalds (NYSE: M) , YUM! Brands Inc (NYSE: YUM) which owns Taco Bell, and Jack in the Box (NASDAQ: JACK) which owns QDoba.

My first visit did not disappoint. Chipotle's mission is stated right on the menu for all to see - to offer "Food With Integrity." Choose a chicken dish and you get meat "raised without antibiotics and fed a diet free of animal by-products." Order pork and it is "raised outdoors or in deeply bedded pens and without the use of antibiotics." Ask for Beef and you get it  "raised without the use of added hormones and (of course) antibiotics." Veggies, "a portion of produce is organically grown" and "certain produce items are bought locally while in season." For Dairy, "the cheese and sour cream comes from dairy cows that are not given the synthetic hormone rGBH."

In other words, a Chipotle meal is an experience of "home away from home" - farm fresh ingredients right out of the garden and paddock, just like grandma made back on the (Triple P) ranch. According to a news release, Chipotle served more naturally raised meat and local produce than any other restaurant company in the country - more than 100 million pounds in 2011. “We want to change the way people think about food, which is why we are committed to making great-tasting food from premium quality ingredients available and affordable for everyone.” And bringing such chuckwagon fare to more and more people is Chipotle's goal.

Spokane is obviously not the only city on Chipotle's trail drive across the territories. The company is establishing such Triple P outposts all over the nation, having more than 1100 at last count. More are planned. And this is good for consumers, investors and the planet alike.

However a look at the facts suggests that while Chipotle's vittles warrant a BUY for the consumer, for the investor stock action could run the gamut of BUY, HOLD or SELL.

Triple P Recommendation: Consumer - "Buy, Buy, Buy"

The decor is minimalist and feels fresh. The staff is friendly. Service is quick and, most importantly, Chipotle delivers on the food. It is tasty, nutritious and "good" for the eater and the earth, though portions are a bit too big for this horseless cowboy's expanding girth. Translation? For the consumer on the triple P lifestyle-wagon, Chipotle's burritos, tacos, bowls and salads are unreservedly rated a BUY. Regular purchases here definitely help green the One-World we have by actively promoting the Triple P's of sustainability.

Triple P Recommendation: Investor - "Sell, Buy or Hold?"

Chipotle's One-World-Rating, now renamed the Triple-P-Rating, of a TP-331(7), would qualify its stock as a BUY on the grounds of its high Planet Score and People Score of "3." Run through the rigorous Natural Step sustainability screen, Chipotle's commitment to becoming a sustainable organization, and helping consumers do so too, is clear. It is not minimal, not average but definitely stellar!

However, its low Profit Score of "1" checks any unbridled enthusiasm that this high priced stock is a good buy now. And the Motley Fool community's thoughts are understandably diverse on the matter too.

The Motley Fool CAPS community gives it a rating of two stars resulting in a Triple-P-Rating Profit Score of just "1" [a one and two star CAPS rating gives a Triple-P-Rating of TP-XX1(X), a three star CAPS rating a Triple-P-Rating of TP-XX2(X), and a four and five star CAPS rating a Triple-P-Rating of TP-XX3(X)]. For the investor this invites deliberation on what position to adopt concerning the stock. It certainly doesn't translate into an immediate BUY recommendation but could result in a considered SELL.

Fellow Fool Alyce Lomax sees Chipotle's drop in price as a buying opportunity while David Gardner and the Rule Breaking team see a sell and redeployment of capital a wise move even as they continue believing in this great company and maintain a partial position. Each of us will need to make our own decision.

Benediction

My visit to Chipotle was nothing out of the ordinary. I had the Barbacoa Burrito, my wife the

Carnitas, washing down both with an ordinary cup of water. And yet, ... it. was. extra-ordinary! The receipt presented a value far greater than the price of the meal, $16.63. Four focused words printed beneath Chipotle's logo summed it up best - "Tastes Good is Good."

I left this Triple P outpost not only with a full belly, but with a song in my heart (listen to and watch Chipotle's 2012 Superbowl ad here) and a vision of what could be. My feeling was the boundary fences of the Triple P ranch had shifted, again. It now had another beach head into Planet- and People-indifference and celebrated that the health of this One-World we have matters more and more to consumers. That translates into greater opportunity for triple P-type entrepreneurs and investors alike.

Whistling "Back to the Start" with thoughts that one purchase had helped "cultivate a better world," we hit the trail for home. We'd be back! Ready to put our money where our mouth is!

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