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The Motley Fool

Chipotle Mexican Grill's sky-high valuation means there's no margin of safety for investors

The Motley Fool
Summary
Nutrition label

59% Informative

In the past five years , Chipotle Mexican Grill stock has soared 307% thanks to a strong financial performance.

But the warning that investors should heed is Chipotle 's sky-high valuation.

A high P/E multiple creates a major hurdle to achieving strong returns.

There's no doubt that Chipotle is a high-quality enterprise but the valuation just isn't compelling right now.

Right now, we’re issuing “ Double Down ” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Stock Advisor returns as of November 11 , 2024 Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill . The Motley Fool recommends the following options: short December 2024 $ 54 puts on Chipotle Mexican Grill . The Motley Fool has a disclosure policy. 1 Warning Before You Buy This Unstoppable Stock was originally published by The Motley Fool .

VR Score

46

Informative language

43

Neutral language

4

Article tone

informal

Language

English

Language complexity

36

Offensive language

not offensive

Hate speech

not hateful

Attention-grabbing headline

detected

Known propaganda techniques

not detected

Time-value

short-lived

External references

8

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