Reference no: EM132971240

Problem 1: What do you believe is Chipotle Mexican Grills competitive advantage?

Problem 2: Using the Financial Statements document you can see that the total book value of Chipotle Mexican Grill stockholder's equity was $1,683,026,000 or $60.67 per share as of December 31, 2019. On this same date the stock market valued the equity of the company at $23,225,037,600 (calculated as the 12/31/2019 stock price of $837.24 per share multiplied by the weighted average number of basic shares outstanding for 2019 of 27,740,000 shares). This is a difference of approximately $21.5 billion or $776.57 per share ($837.24 market price minus the $60.67 book value per share). How could there be such a big difference between what the accountants say is the stockholder book value and what the market Chipotle's stock is worth. Please discuss why this could be justified and listing specific reasons or why you believe this may be unjustified also listing specific reasons.