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Chipotle Mexican Grill's stock faced a decline on Wednesday following the release of its financial results for the third quarter of 2024. Despite the company's impressive numbers, analysts raised red flags, leading to a notable drop of nearly 7% in the stock's value by 11:30 a.m. ET.

During the third quarter, Chipotle exhibited robust growth. Same-store sales saw an annual increase of 6%, bolstered by a 3% rise in transactions. The combination of higher sales and the opening of new locations resulted in a 13% growth in overall revenue, reaching $2.8 billion. Additionally, the company's adjusted earnings per share surged by 17%.

However, the strong performance was not sufficient to dispel concerns among analysts. During Chipotle's Q3 earnings call, critical questions arose about the pace of new restaurant openings, the operations at these new locations, and the impact of ongoing inflation. Essentially, investors are grappling with worries that the company’s growth momentum may be decelerating and that profit margins might face further pressure.

The report from Q3 was largely in line with investor expectations, with little improvement in future guidance. As a result, there was limited impetus for the stock to rise, and mounting concerns about potential headwinds prompted a drop in its value.

Despite these concerns, some believe that the apprehensions about Chipotle's business operations might be overstated. Even though the restaurant-level operating margin decreased from 26.3% last year to 25.5% in Q3, this is still a solid margin. Furthermore, Chipotle’s management is optimistic about supporting average annual sales volumes of $4 million per restaurant along with maintaining 30% operating margins.

Although Chipotle's stock remains pricey even after the recent decline, it continues to be a strong contender in the restaurant industry. For those seeking to invest in a leading operator, Chipotle remains a viable option. However, value-seeking investors may need to wait for a more opportune time to purchase shares.

Jon Quast does not hold any positions in the stocks mentioned. The Motley Fool holds positions in, and recommends, Chipotle Mexican Grill. The Motley Fool also suggests specific options with Chipotle Mexican Grill.