Chipotle's High Price Tag: Is It Worth the Cost?

Chipotle Mexican Grill (CMG) has a price-to-earnings ratio of 28.7, which is second-highest among six large restaurant chains.

In comparison to its rivals, Chipotle falls short in terms of margin. McDonald's shows the widest gap, with an operating profit margin of 45.7% compared to Chipotle's 15.4%.

Chipotle's stock still costs more relative to its earnings than most of its competitors, including McDonald's which trades at 18.9 times earnings.

The company has been opening new restaurants quickly, with plans to open approximately 350 new locations in 2026. However, each restaurant keeps a thinner margin, with Chipotle's restaurant-level margin decreasing by 2.2 percentage points from the previous year due to rising beef and freight costs.