This is a technical-only analysis, but CMG's market cap is a large $13 billion and their are a small $230 million (rounding off). With sales only $2.4 billion, CMG is a whopping 5.8 times trailing revenues. Would you buy the whole company with $13 billion of your cash laying around so you can "earn" less than 2% on your money in a restaurant business? Obviously they have leverage to grow the company and have done so very successfully to date.
Cheers. By: Technical Tim, 3:00PM EST Monday, April 30, 2012