Investopedia: Has A Bad Year Put Chipotle In Value Territory?

Although the dining industry is not exactly a high-growth industry in the traditional sense, investors have seen repeatedly that the right concept, bought at the right time, can deliver substantial capital gains. Chains such as Red Robin (Nasdaq:RRGB), Cheesecake Factory (Nasdaq:CAKE), Buffalo Wild Wings (Nasdaq:BWLD) and Panera (Nasdaq:PNRA) (and before Panera, its predecessor Au Bon Pain) have all had their runs, but maybe none quite like Chipotle Mexican Grill (NYSE:CMG).

Unfortunately for investors, many seemed to fall into the common trap that valuations didn't matter and Chipotle would always outgrow such tiresome concerns as valuation. With same store sales slowing significantly this year, the stock has tumbled on worries about that growth-value trade-off. While the valuation at Chipotle is as reasonable as it has been in some time, it's still not exactly cheap unless investors believe this company can essentially break the rules when it comes to future growth.

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