Chipotle Stock: Time to Sell Some Shares?
Shares of Chipotle Mexican Grill (NYSE: CMG) took a hit in after-hours trading on Tuesday, when the burrito company announced fourth-quarter revenue and earnings per share that were below analysts' average estimates for the two metrics.
The top- and bottom-line miss highlights one of the biggest concerns with investing in the fast-casual restaurant operator's stock today: valuation. If it weren't for the stock's pricey valuation, the company's double-digit revenue growth during the period would be impressive. But the stock's price-to-earnings ratio of about 51 means that investors have high expectations for sustained levels of rapid growth for years to come.
Here's a look at Chipotle's fourth-quarter results and why they may not be enough to justify the stock's current valuation.
Source Fool.com
