Where Will Chipotle Stock Be in 5 Years?

It may sound silly to ask where restaurant company Chipotle Mexican Grill (NYSE: CMG) will be in five years. After all, five years is a long time, and a lot can happen. But making reasonable assumptions about the long term is essential for investors, and five years is a reasonable time frame to consider.

According to a 2006 study from Boston Consulting Group, top-line growth, profit-margin improvement, and higher valuations have historically been the three most significant factors for winning stocks over five-year periods. I believe two of these three will be a challenge for Chipotle, and it's why I think this stock will struggle to outperform the S 500.

Of the things it must do to create shareholder value, growing revenue will be the easiest task for Chipotle over the next five years.

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Source Fool.com