CHIPOTLE MEXICAN GRILL $552.18 - New York symbol CMG

CHIPOTLE MEXICAN GRILL $552.18 (New York symbol CMG; TSINetwork Rating: Speculative) (303-595-4000; www.chipotle.com; Shares outstanding: 31.0 million; Market cap: $17.1 billion; No dividends paid) is a Denver-based Mexican restaurant chain.

In the three months ended December 31, 2013, Chipotle’s sales rose 20.7%, to $844.1 million from $699.2 million a year earlier. Chipotle’s restaurants attracted more customers in the latest quarter, which pushed up samerestaurant sales by 9.3%. Per-share earnings gained 31.1%, to $2.57 from $1.96.

The company operates in the fickle and competitive U.S. restaurant market. The shares are now well above their April 2012 high of $442.40 and trade at over 45 times Chipotle’s forecast 2014 earnings of $12.20 a share. That’s a high ratio that leaves the stock vulnerable if the company runs into any short-term problems.

Chipotle is still a hold.

A professional investment analyst for more than 30 years, Pat has developed a stock-selection technique that has proven reliable in both bull and bear markets. His proprietary ValuVesting System™ focuses on stocks that provide exceptional quality at relatively low prices. Many savvy investors and industry leaders consider it the most powerful stock-picking method ever created.