Chipotle Continues to Defy Valuation Logic and Short Bets

Chipotle Mexican Grill Inc.’s market capitalization of nearly $14 billion almost matches the total value of four of its peers combined. The Mexican-food mammoth is being treated like it’s an Inc., Tesla Inc., Apple Inc. or Alphabet Inc.’s Google, when in fact all it does is make burritos, Standpoint Research founder Ronnie Moas wrote in a note, recommending shorting the stock. Chipotle has risen more than 2,000 percent since its 2006 IPO and short interest has halved from a six-year high in November.

— With assistance by Matt Turner

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