Chipotle Mexican Grill Is A Great Company, But The Price Is Just Too High
- Aggressive store expansion is already priced into the stock.
- Food inflation has squeezed operating margins, wiping out gains from staffing and occupancy leverage.
- CMG is a volatile stock - investors should wait for a pullback before considering a position.
- CMG is already 15% off its March highs, and the fall is not done yet.
- 17% downside even with robust growth assumptions.