Chipotle Mexican Grill, Inc. (CMG): Why This Top Analyst Says Buy

Chipotle Mexican Grill, Inc. (CMG): Why This Top Analyst Says Buy
Chipotle Mexican Grill, Inc. (CMG)

Breaking News! Want to hear the latest updates on Chipotle Mexican Grill, Inc. (NYSE:CMG), your favorite fast-casual-dining restaurant? Well, Belus Capital analyst Brian Sozzi has done the research and is recommending BUY CMG based on his findings.

Play Quizzes 4

Brian is ranked 88 out of 2385 analysts and has earned this high ranking position, along with his 5.0% average return over S&P-500, through his dedicated company research.

Chipotle Mexican Grill, Inc. (CMG)

His BUY Chipotle Mexican Grill, Inc. (NYSE:CMG) rating and $600.00 price target are a direct result of his fieldwork in the restaurant industry. Brian believes “Chipotle is unwrapping for its investors strong growth today due to multiple fundamental elements, including: (1) increasingly quicker line throughput (during peak times people are getting onto, and off of, the line faster); (2) intensely positive customer response to new restaurant locations (could see this via photos on a Chipotle keyword search on Twitter); and (3) a switch to a non-GMO menu that in our view has begun to already appear in the same-restaurant sales (people feel better about eating at Chipotle and share with others personally or on social media that positive experience).”

Fund Manager Profile: Zhang Hui Of China’s Southern Asset Management

investHistorically, the Chinese market has been relatively isolated from international investors, but much is changing there now, making China virtually impossible for the diversified investor to ignore. Earlier this year, CNBC pointed to signs that Chinese regulators may start easing up on their scrutiny of companies after months of clamping down on tech firms. That Read More

Brian justifies Chipotle’s present market valuation due to several factors, including: “(1) an accelerated pace of domestic new Chipotle Mexican Grill, Inc. (NYSE:CMG) openings; (2) a careful introduction of new menu items (sofritas; we expect some form of broader breakfast platform in short order); (3) the start of a restaurant remodeling campaign to stay fresh and relevant, and capture more of the post work crowd.” Brian also noted that menu prices will likely increase, new concepts are thoughtfully being put into action to maintain the culture of Chipotle, and new investments in mobile payment will also keep things moving along nicely.

However, Brian did note that Chipotle is not preparing to launch “drinks innovation in carbonated or alcohol”, leaving a place wide open for Starbucks to lead on this front. Regardless, moves to make the menu GMO free by the end of 2014 and the addition of new items on the menu through the philosophy of “letting you [the customer] customize the experience” is leaving Brian with a hunger to BUY Chipotle.

To continue following Brian’s financial recommendation about Chipotle, as well as other companies, download TipRanks and start making informed financial decisions with advice you can trust.

Updated on

TipRanks was founded in 2012 with the goal of giving power back to the individual investor. Our hope is that by making analyst performance data easily available and highly visible to the investing public, TipRanks will not just help save others from our investing mistakes, but will also bring back accountability, objectivity, and transparency to the business of stock picking and analyst reports. TipRanks is proudly unaffiliated with any investment firm.
Previous article Asia On Stronger Footing Than Rest Of Emerging Markets
Next article Chesapeake Energy: “New Blood,” “Same Old Assets”

No posts to display