Is Chipotle Stock Overvalued?
With the market in turmoil this year -- and many companies seeing their share prices hammered -- it might appear that nearly every stock out there is cheap. Some popular consumer-focused tickers in particular are selling at historically low valuations, which might entice investors to jump on board.
But don't be mistaken. There are still stocks out there that might be on the expensive side, despite the market's weak performance this year. Chipotle Mexican Grill (NYSE: CMG) comes to the top of my mind. It has been a winning investment, but it might be a good idea to think twice before you become a shareholder in this top restaurant stock.
While many restaurant businesses struggled just to survive during the pandemic, Chipotle flourished. Leaning heavily on its digital infrastructure that lets hungry customers order for pickup or delivery, the company strengthened its competitive position in recent years. After growing 7.1% in 2020, sales surged 26.1% in 2021.
Source Fool.com
