The Burrito Bubble is Chipotle the most Overvalued Stock in America? — Market Mad House

America faces a burrito bubble, shares of Chipotle Mexican Grill (NYSE: CMG) were trading at $1,348.47 on 20 October 2020.

Moreover, Chipotle’s share value grew by $489.57 in 2020. Mr. Market paid $858.19 for Chipotle (CMG) on 2 January 2020 and $1,339.68 on 16 October 2020 and $1,348.47 on 20 October 2020. Moreover, Chipotle shares rose to $1,379.03 on 2 September 2020.

In contrast, Chipotle reported a quarterly operating loss of -$4.94 million and a quarterly common income of $8.18 million on 30 June 2020. Moreover, Chipotle’s revenues and gross profit have fallen in 2020.

Chipotle’s Revenues fall

It is obvious Mr. Market has not read Chipotle’s financial numbers. Chipotle’s revenues, gross profit, and revenue growth rate are falling as its stock price soars.

Chipotle (CMG) started 2020 with quarterly revenues of $1.44 billion on 31 December 2019. The quarterly revenues fell to $248.87 million on 31 March 2020 and $166.76 million on 30 June 2020.

Moreover, Stockrow estimates Chipotle’s revenue growth rate fell by 4.85% in the quarter ending on 30 June 2020. However, Chipotle’s revenue growth rose by 7.84% in the quarter ending on 31 March 2020 and…