Chipotle Mexican Grill (CMG) Stock Analysis: Is It Worth Investing Now?
Business is still booming
While many fast-food restaurants have been struggling with growth lately, Chipotle has still been posting strong numbers. For the first three months of 2024, revenue rose by 14% to $2.7 billion. And its comparable-store sales (comps) were also up 7%.
CMG revenue (quarterly) data by YCharts.
Today, Chipotle's stock is trading at close to 70 times its trailing earnings. But investors have paid higher multiples for the stock in the past.
Should you buy Chipotle stock today?
Chipotle has a solid brand, and the business has been able to increase its revenue without having to compromise profitability, which is great for investors. But with the economy still far from ideal, growth could come down in the future, which might put downward pressure on the stock.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.