Chipotle’s year-to-date return
As of February 6, 2014, year-to-date (or YTD) returns for Chipotle Mexican Grill (CMG) were about -2%, compared to average returns of 1.7% on the S&P 500 Index and an average 0.9% among the peers listed below.
Chipotle is trading at next twelve month price-to-earning ratio (or PE) of 39.2x, which is above the average of 31.4x of the peers in the chart above. This indicates that Chipotle is overbought or is expensive. Bear in mind, PE ratio is not the only aspect you need to consider while investing.
Chipotle’s restaurant as a whole is continuing to deliver solid results. Additionally, Chipotle introduced its two new concepts to its managers during its conference in Las Vegas at the end of the third quarter. This could mean that Chipotle may leverage its existing employees to launch these concepts aggressively in the coming years.
At Market Realist, we publish earnings overviews every quarter. You can read more about restaurant stocks, like the 3Q14 earnings of Yum! Brands on our industry page.
You can also read the company overview on McDonald’s (MCD) or indicators that are important to the restaurant industry.