My stock pick today is based on the advice of Peter Lynch, the investing legend who advised people to buy stocks of companies whose products they knew and used.  Lynch followed his wife’s approval of L’Eggs panty hose to a big profit in the company and used his own preference for Gillette razors to guide him to another big winner.

I’ve recently eaten at a Chipotle Mexican Grill (CMG), and I’d have to say that my tummy approves of this stock pick.

Chipotle is a chain of over 800 Mexican-themed restaurants that has turned a simple menu of tacos, burritos, salads and burrito bowls into a successful business plan.  The emphasis is on high-quality, fresh, organic ingredients prepared on-site and served up with style.

The company was originally a subsidiary of McDonald’s, but was spun off in 2006.  The stock had a huge run in 2007, soaring from 52 to 155.  But when the correction came, it was a whopper!  The stock plummeted to 37 in November 2008 and launched a failed bounce in December, then settled down to building a new base.

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The breakout came in March and has boosted CMG from 48 to an intraday move over 90 before a little profit-taking pulled it back to near 80.

Restaurant and retail stocks are the flavors of the week these days, and CMG has been enjoying a great run, fuelled by a 50% gain in Q1 earnings and a 7.2% after-tax profit margin that matches the company’s historical best.

I discovered CMG by using my screen for stocks that have gone up for five or more weeks in a row (I wrote about this yesterday).  There’s gold in them thar burritos.