This Stock Is Supposed to Be the Next Chipotle, but Its Growth Rate Has Been Slowing -- Drastically
When a stock is compared to an already established high-growth stock, expectations tend to also be set high. While growth investors can sometimes buy up a stock based on that hype, there's the risk that reality doesn't quite align with those expectations. If that happens, it can set up a stock for a sell-off in the future.
Cava Group (NYSE: CAVA) has often been compared to Chipotle Mexican Grill (NYSE: CMG), which has been a terrific business to invest in. In five years, investors have collected massive 340% returns from Chipotle, so it's easy to see why Cava investors may be optimistic about the much smaller stock's potential upside.
But based on its latest earnings numbers, there could be some cause for concern, as Cava may not be living up to those high expectations.
Source Fool.com
Chipotle Mexican Grill Inc. Stock
With 70 Buy predictions and 1 Sell predictions Chipotle Mexican Grill Inc. is one of the favorites of our community.
Based on the current price of 45.89 € the target price of 2478 € shows a potential of 5300.46% for Chipotle Mexican Grill Inc. which would more than double the current price.
