NEW YORK ( TheStreet) -- If you want to define "chipotle," as in Chipotle Mexican Grill (CMG - Get Report), just take look a the company's stock price, which is up close 20% over the past three months and is up 50% year-to-date. At a price-to-earnings ratio of 46, more than twice the valuation of Yum! Brands (YUM), these shares carry some eponymous heat.I don't deny that Chipotle has built itself into a leading fast-casual restaurant that's posting strong growth and above-average margins. To the extent that the company now deserves a P/E that is almost 3-times that of McDonald's (MCD), I don't believe it does. Not to mention this leaves absolutely no margin for error in an environment where discretionary remains unstable.
Chipotle's Still Sizzling Ahead of Earnings
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