Analysts are pointing to the stock’s high valuation.
In the last year, the stock has soared 84% to $797 per share, giving it a market value of $23 billion. The average analyst price target for Chipotle shares is $844.22, according to Refinitiv. The stock hit a record high in July and kept climbing, peaking at $857.90 a share in early September.
Chipotle’s stock is trading at nearly 49 times its forward earnings estimates and 64 times its prior 12-month earnings, according to Refinitiv.
Its competitors in the restaurant sector have much lower price-to-earnings ratios. Shares of Yum Brands, the parent company of Taco Bell, and Starbucks trade for 26 times each company’s forward earnings, Refinitiv data show. After McDonald’s shares slid Wednesday on its lackluster third-quarter earnings, the restaurant giant’s stock…