"Also - you better pray that cmg maintains favorable vendor pricing terms as they received under McDonald's ownership. Without the volume discounts received under McDonald's ownership, you can except them to pay higher prices for goods, which will result in lower EPS."
I know the prospectus warns of this, but you don't really expect it to be an issue, do you?
CMG has built its own network and continues to build its own network of suppliers for organic pork, chicken & increasingly, beef, beans, etc. The "Food With Integrity" initiative is one of CMG's competitive advantages & is independent of MCD's network. As for the price of other inputs, my view is that this is a non-issue given that CMG with $700 million in sales has enough bulk to generate favorable contracts on its own. Given that the CFO is a 22 year McDonald's veteran, CMG is probably up to the task of negotiating decent contracts if that is necessary.
They have already separated from MCD on the most expensive items anyway - meat. Natural-raised pork, beef and chicken. Where else (except Coke) does MCD offer superior pricing advantage? Tortillas? Rice? Beans? I don't think so.
I see this as a non-issue.
I like to focus on this - "Chipotle is looking to up operating earnings by about 25% per year over the longer term based on a combination of new-store openings and strong margins. This year, Chipotle forecasts a the mid- to high-single-digits rise on a percentage basis." - CBS Market Watch.