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Actionable news in CMG: CHIPOTLE MEXICAN GRILL Inc,

Chipotle's Not Cheap, but Can Still Sizzle Ahead of Earnings

NEW YORK (TheStreet) -- Shares of fast-casual restaurant Chipotle Mexican Grill (CMG - Get Report) don't often make it to the value menu, and don't hold your breath waiting for them to do so. With Chipotle stock trading at around $724 -- up some 6% on the year -- the company's forward P/E is about 41, or more than twice the forward P/E of the S&P 500 (SPX) index, making it a pricey stock for investors looking for more upside.

Nonetheless, an expensive valuation hasn't stopped the Denver-based company from producing stock gains of more than 300% and 150% in the past five years and three years, respectively. And ahead of its third-quarter earnings results -- due out after the closing bell Tuesday -- the next five years for Chipotle may be just as impressive, owing to its recent price increases. And that's reason enough to take a chance on the stock, expensive or not.

Analysts on average expect Chipotle to grow earnings per share at an...