Is Enthusiasm Over Chipotle Stock Overdone?
Chipotle (NYSE: CMG) shares are on fire. The stock is up 16% in the past month and 35% in 2021. The company moved quickly at the pandemic's onset to emphasize online ordering for delivery and pickup, and those decisions paid off.
Now that businesses are reopening, restaurant dining is making a return. Some investors are optimistic that the company will come out of the pandemic stronger than before. Management deserves credit for navigating the Covid shutdown, but is enthusiasm for the stock overdone? Those who argue that it is may not be off base. It certainly feels like the valuation is stretched.
Chipotle stock is on fire after the company reported excellent second-quarter results. Image source: Getty Images.
Source Fool.com
