Chipotle: Excellent Earnings, but the Stock Needs a Breather

Sales plunged at Chipotle Mexican Grill (NYSE: CMG) in the early months of the COVID-19 pandemic, as stay-at-home orders disrupted restaurant traffic. However, the fast-casual giant quickly pivoted to an emphasis on takeout and delivery: especially orders through its digital platforms.

On Wednesday, Chipotle released its third quarter earnings report. The results confirmed that its growth initiatives are working. Nevertheless, Chipotle stock slumped following the report: a reflection of its stretched valuation after a roughly 60% rally in 2020.

Source Fool.com