That stock is out of control. From 294 to 720 in 2 years!? Those are some amazing gains, and begs the question, how much higher can it go? Do you feel it is an overvalued stock at this point? CMG dropped a bit and is currently at 703.89. The reason I posted this in the stock market education category is I am hoping someone with a little more knowledge can explain why some of the stocks explode like this. And how dangerous are they???
At a PE of ~ 55 and a PB of ~ 11, I think it is pretty expensive - but perhaps not relative to other restaurant stocks in general. 3 year earnings and revenue growths above 20%, and they earned $4.15 a share in the last QUARTER - that's pretty damned good for a taco chain. I wouldn't buy heavily at this level, but I suppose it could go even higher. I wouldn't be shocked to see a 10:1 split here.
Chipotle is really popular with younger consumers. Fast food joints are losing market share to healthier options like Panera Bread and Chipotle. I look for this stock to continue to increase in value and for Chipotles rise to continue.
Yeah looks expensive. Why has it exploded? Well usually it's one of two things: constant increase in earnings or expectations of a future large increase in earnings. Chipotle has done the first and with a PE of 55 it looks like investors are expecting the growth to continue for quite some time.
If you've ever been to a Chipotle, then it's not hard to see why the company is so successful. The lines are constantly packed at the more popular locations, the food always tastes good, and the employees are mighty friendly. You get a decent amount of food for what you pay, too. Chipotle has expanded across most of the country while posting high profits and continuing to see growth. It's not surprising that the stock price has followed a similar pattern. It's a costly stock, but the company isn't going to slow down any time soon.
Honestly, I have never been to Chipotle. Even with the current high price, I am tempted to buy in and enjoy the roller coaster ride. It worked with Jet Blue
Even if you don't invest in Chipotle, I'd recommend trying it. It's pretty darn good on most days. Some people don't like that style of food (closest to San Francisco's version of Mexican food), but it's decently healthy and tasty nonetheless. I'd invest in Chipotle despite its high cost, and I'll always eat at Chipotle because there are tons of them in Southern California.
They're getting hammered after hours on earnings news. http://www.marketwatch.com/story/ch...ter-earnings-report-2015-02-03?dist=afterbell
Without looking into other details, doesn't seem that the earnings were bad at all. EPS went from $2.53 to $3.84... quite spectacular. Of course with a super high P/E expectations had to be high, maybe it's their estimate of same store sales increasing only a couple % next year while ingredient costs are higher that lead to this reaction? Then again, isn't the price of food (so ingredients for them) going to be a bit lower due to the cheap oil that we currently have? Though I don't think it will have a huge effect as I expect oil to bounce back up.
Yikes, they took a huge hit yesterday... Down -50.63. I am glad I waited to invest... I would imagine now may be a good time to invest though. It has to recover from this! Right??? On a side note, I finally tried the food. It was delicious! A new generation of fast food
