2 Pros Debate Chipotle's Valuation After Digital-Only Store Launch

Casual fast-food chain Chipotle Mexican Grill, Inc. CMG introduced its first-ever digital-only store to leverage the surge in digital ordering. But this shouldn't necessarily distract investors from the stock's valuation debate that could have more of an impact on the stock.

EPS Growth: Chipotle's stock suffered from a "burrito blowout -- but the bad kind" when the company's stock traded lower in reaction to its third-quarter report, CNBC "Fast Money" regular Guy Adami said Wednesday evening. The company's recent success in digital has been "tremendous" and should help spur earnings per share growth.

Related Link: A First For Chipotle: Digital-Only Ordering Restaurant To Open This Week

The stock found support at the $1,200 level and has since recovered above $1,300 per share. The stock has further near-term upside to the $1,380 level and investors should "stay long CMG," he said.

P/E Ratio: Chipotle's near-term prospects to capitalize on digital does not necessarily translate to long-term opportunity, "Fast Money" regular Tim Seymour said. The stock's P/E multiple of 156 times "just doesn't make sense" and the stock is unlikely to get through to $1,380.

"I just think this digital transformation is something that has been part of the last 90% move in the stock and is well flagged," he said.