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2019-11-08 16:01:05

Chipotle Mexican Grill, is a turnaround story. The firm has turned around from the food safety issues that plagued it over the past few years. The food contamination problems are behind them and customers are returning in large numbers. Moreover, new management has put in place strategies to fuel top line and bottom line growth. In our opinion, the policies will work because CMG still has a highly profitable business model and its value proposition to customers remains strong – easily accessible delicious healthy fast food at a reasonable price point. It worked for 22 years before the food safety outbreak. No reason for it not to work now and into the future, particularly given all the modernizing the company has embarked on, including digitizing ordering and paying, offering delivery, reinventing the rewards program, updating menu items, and renovating stores. We are Bullish on CMG’s potential and rate the company a Buy with a 1-year Price Target of $1,100/share.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.


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