Chipotle Mexican Grill (CMG) Gets a Burrito to the Head
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This weekend's negative Barron's piece on Chipotle Mexican Grill, Inc. (NYSE: CMG) is starting to take a toll.
After opening lower, shares of the Mexican fast-casual restaurant chain are now at the lows of the day, down $8 or 3.5%.
Chipotle Mexican was one of four restaurant stocks Barron's called out as overvalued. The others were BJ's Restaurants (Nasdaq: BJRI), Panera Bread (Nasdaq: PNRA) and Red Robin Gourmet Burgers (Nasdaq: RRGB).
While all the stocks mentioned are lower today, Chipotle is by far the worst performer.
According to Barron's, shares trade at 35 times next year's estimated earnings. Additionally, EV/EBITA is a "whopping" 17x, which compares to the industry average is nine to 10x.
After opening lower, shares of the Mexican fast-casual restaurant chain are now at the lows of the day, down $8 or 3.5%.
Chipotle Mexican was one of four restaurant stocks Barron's called out as overvalued. The others were BJ's Restaurants (Nasdaq: BJRI), Panera Bread (Nasdaq: PNRA) and Red Robin Gourmet Burgers (Nasdaq: RRGB).
While all the stocks mentioned are lower today, Chipotle is by far the worst performer.
According to Barron's, shares trade at 35 times next year's estimated earnings. Additionally, EV/EBITA is a "whopping" 17x, which compares to the industry average is nine to 10x.
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