How does FRGI compare to CMG's growth and stock pricing?
I'm just curious if anyone has done a comparison of FRGI and CMG's growth and could make some comments? I'm not astute enough to analyze the two, but it seems to me that CMG had a terrific growth pattern and outlandish P/E's and still sustained increased stock prices for several years. Could this not happen with FRGI?
On the positive side, FRGI had double the earnings growth of CMG & a ROE of 100% vs 0% for CMG & a lower EV/EBITDA (similar to a P/E ratio) than CMG. However, CMG has no debt vs FRGI which has a Debt to EBITDA ratio of 3. (which is nominal).
I can tell you that frgi has NOT seen terrific growth in earnings per share for the last three quarters. CMG's growth is just one more strong company that will be competing to take customers away from FRGI. FRGI is also diluting shareholder by issuing more stock.