Are Investors Still Hungry for Chipotle?

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Oct. 17 (Bloomberg) -- Alix Steel previews Chipotle's earnings on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Kids.

You can catch jon erlichman everyday at 1:00 and 6:00 eastern time.

Brito giant chipotle reports earnings after the closing bell today.

Can the company live up to giant expectations?

Alix steel joins us with more.

What are some of the worry spots?

It is hard to find them.

This stock is so loved.

It is up 50%. one of the big ones here is valuation.

It is expensive.

It's price-to-earnings ratio is 46. it is a growth stock.

Restaurant growth stocks are quite impossible to come by.

People are willing to pay up.

The common metric is about 10%. to pull actually has that.

-- chipotle actually has that.

It can expand as fast as it wants to.

It has about five years left in it to have this kind of growth.

The other worry is that quarterly sales -- you can see it drop.

The s&p is looking at just about 4% growth.

There are two reasons for this.

The company has resisted price increases.

They are not making more money per store.

When a new store opens, lots of people go there.

The comparable sales are quite hard to come by.

Isn't it opening nearly 200 stores this year?

Yes it is.

That is the hope.

The mass number of new stores well offset lower revenue per store.

It is pretty much a good thing.

Is chipotle is not raising prices, what is that doing to its margins right now?

The margins are the best in the industry.

That is what i hear from analysts.

You can see the charts.

They have been sliding over the past five years.

The margins are not going to go up anymore.

Part of that story is that they are the best there ever going to be.

The other part is the costs.

They're really into hormone free.

All of this is really the broader picture.

How the restaurant industry is actually doing.

Less people actually plan to weed out.

Even people making more than $100,000 per year are skimming

This text has been automatically generated. It may not be 100% accurate.

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