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Meteoric Rise of Chipotle Mexican Grill Stock is Not Over

Meteoric Rise of Chipotle Mexican Grill Stock is Not Over

The price action in Chipotle Mexican Grill NYSE: CMG has been smoking hot, and it is not over yet. The 1100% gain posted since 2017 is the tip of the iceberg for this fast-growing, fast-casual restaurant that is gaining leverage and on the brink of an international expansion. 

You might say that the ballistic rise in share prices and high 58X earnings price multiple are reasons to fear a correction, and you would be right, but there is a caveat. The company’s growth plans include doubling the North American business and expanding into international markets: international markets could outpace the North American segment over time, doubling the business again. In this light, corrections may come, but they will be met by eager buyers who drive the stock to new highs because of revenue and earnings growth. 

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