Why P/E Ratios Are for Losers
And both Chipotle and Lululemon have plenty of room to expand domestically and internationally.
Lululemon plans to open up to 30 new stores in the United States in 2012, which will take the total closer to 200, from the 155 locations it counts, as of the end of 2011. The company also plans further expansion in markets such as Australia, New Zealand and parts of Asia and Europe.
Chipotle, meantime, had 1,229 locations at the end of 2011, and expects to add between 155 and 165 more in 2012. As of the end of 2011, the company only has four locations outside of the U.S. (Two in Canada, two in the UK). It expects to open its doors to Paris in 2012.
At both companies, international expansion holds the promise of considerable kicks to revenue.
Both companies, like Amazon, operate from a position of strength. While not as well-heeled as Amazon, Chipotle and Lululemon carry relatively healthy balance sheets as they continue through their respective hyper-growth phases. Compare this to recent numbers at Netflix:
*Data courtesy of each company's 2011 annual report.
**Cash includes $400M in late 2011 fundraising; Debt does not include $3.9B in off-balance sheet obligations due within five years.