Chipotle Shares Rally Massively: Anybody Remember BJ's Restaurants?

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Chipotle Mexican Grill shares are once again in the spotlight after they rallied a massive 13.5% after the Denver-based burrito chain released other-worldly fourth-quarter 2013 results. The earnings beat completely annihilated consensus estimates, after same-store sales for the company jumped a dizzying 9.3% in the last quarter. At the current share price, Chipotle shares have gained a mind-numbing 79.8% in the last 12 months, compared to McDonald's 2.7% and Yum! Brands'  6.6%.

Long-term investors should learn to focus on the long-term trends and avoid panicking about market volatility, unless of course this happens to be a result of serious underlying problems in a company. But still it pays to check whether Chipotle shares have a fair valuation in spite of the company's impressive growth or if they have run a little too far too fast.

Meanwhile, Starbucks continues to light up the sector with great growth, while its shares remain decently valued despite having been on a tear for some time now.

BJ's Restaurants  shares were once the darling of the masses who simply couldn't resist the allure of the company's endearing growth story and happily bid up the stock price to near-insane levels. The shares gained a massive 500% in a three-year period to trade at a stratospheric forward P/E of 56 in 2011. But then company sales started slowing down, and the shares took a nosedive that was much bigger than the decline in top-line growth. Although the company's sales revenue has improved by 30% over the last two years, the share price has slipped by more than 40% over the same period

When you compare Chipotle shares with those of other popular growth companies in the sector such as Buffalo Wild Wings, Starbucks, Dunkin' Brands Group, and Krispy Kreme Doughnuts, Chipotle's stock stands out conspicuously like the tallest kid in class.

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