Chipotle Mexican Grill (NYSE: CMG) has had a terrific year so far in 2023, riding the tailwinds of the broader market recovery. Shares of the burrito purveyor are up 49% so far this year, more than quadruple the gains of the S 500. That performance is in stark contrast to its results last year, when the stock slumped nearly 21%.

The rally so far this year came on the heels of the company's stronger-than-expected financial results released on April 25. Demand for Chipotle's "food with integrity" remains strong, even in the face of macroeconomic headwinds. This performance has boosted investor confidence that the company could rise even further, fueled by a rebound in consumer spending.

What does this news mean for investors who sat out Chipotle's current run-up? Should they buy now expecting the rally to continue or avoid the stock because of its frothy valuation and continuing uncertainty facing the broader economy? Let's take a look.

Continue reading

Source Fool.com