Chipotle Earnings: Robust Growth Prospects, but Shares Too Pricey

We are believers in wide-moat Chipotle Mexican Grill's robust competitive position and growth prospects, but the share price leaves us with indigestion. After another quarter of outperformance, we expect to raise our $1,950 fair value estimate by a mid-single-digit percentage, but the stock would still trade at almost a 50% premium to our revised valuation, deep in 1-star territory. We suggest that investors await a more attractive entry point.