BMGT 443 Lecture Notes - Lecture 12: Josh Shapiro, Market Saturation, V12 Engine
24 May 2016
School
Department
Course
Professor
Document Summary
Gopal srinivasan, ari wertheimer, josh shapiro, robert alt, stella zhang, greg. In order to achieve the desired price, of . 15, we decided to drop the revenue growth rate. We dropped the revenue growth rate significantly from a predicted level of 17. 9% in 2017 to a -5. 6% level from 2018 to 2021. We mainly did this assuming that it would reflect the growing distrust consumers have in chipotle regarding health concerns. Next we dropped the ebitda margins from around an average of 19% to 15. 2% from 2018 to 2021. We did so because we assumed that the company would be imposing new regulations and checks due to recent health scares. Lastly, we changed the cv g of the analysis from 3% to 2. 5%. The 2. 5% is the predicted revenue increase forecast for the mexican restaurant industry. This brought the forecast price down to around , which is within of the current share price.
