Piotroski’s Best and Worst Large Cap Stocks

By Joel Stonington - 2011-12-06T01:37:02Z

Photograph by David Paul Morris/Bloomberg

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Piotroski's Best: Chipotle Mexican

Business: Owns and operates quick-service Mexican restaurants

Piotroski Score: 9

While the company's gross margin bumped up in 2010 to 69.44 percent, from 69.31 percent a year earlier, its return on assets is a bigger story, increasing to 17.18 percent from 13.2 percent in 2009.

Outlook for the Company:

Bull Case: Chipotle's (CMG) margins should benefit from increases in its products' prices, according to Goldman Sachs.

Bear Case: Food inflation is expected to continue in 2012, says Chipotle's chief financial officer, John Hartung, putting pressure on Chipotle's costs.