Why This Food Stock Is Better Than Chipotle
As the COVID-19 pandemic swept across America and lockdowns began hammering the economy, Chipotle Mexican Grill (NYSE: CMG) managed the situation better than many of its restaurant sector peers. By early May 2020, its stock price was already trading above its pre-pandemic level, and it nearly doubled that value by February 2021.
While its stock still trades near record highs, Chipotle may be losing momentum. Beyond Meat (NASDAQ: BYND), however, appears to have more upside and could be worth a look as a strong food sector alternative.
Despite several stock price spikes this year, including a current one that started in late June, Chipotle's share price hasn't broken above the $1,525 to $1,575 range. Each of 2021's two previous peaks was followed quickly by a stock price slump. Could the restaurant chain's stock price be reaching the limit of valuation justified by its performance?
Source Fool.com
