Why Chipotle Is A Great Buy Here? This Analyst Explains

Although Chipotle Mexican Grill, Inc. CMG reported better than expected quarterly earnings on Wednesday, the company’s stock took a deep plunge on back of the forward guidance coming in weaker than analysts expected. However, not all analysts are going negative on the company just yet.

Nicole Miller Regan, Piper Jaffrey senior restaurant analyst, was on CNBC post Chipotle’s results to discuss why Chipotle is a great buy here and why it has more upside than McDonald's Corporation MCD

Great Day To Buy

“Today would be a great day to hop in and buy the stock here,” Reagan said. “We are not worried about the brand itself, it’s the strongest management team, the culture is the best, the transferability of that culture as they grow restaurants around the globe.”

Slower Growth Concerns

Regan was asked that based on the lower than expected guidance by Chipotle are their signs that the growth may be slowing for the company. She replied, “Well, I think that investors at this point are showing that they are scared of what they do know and not what they don’t know. Management is signalling that prices falling off.”

“6 percent price pull that out of the comps, comps slightly do go down, but there are still a lot of things they can do to pull comps up in terms of catering and some price on some of the proteins.”

McDonald’s v/s Chipotle

On which is a better stock among McDonald’s and Chipotle, Reagan said, “I think that the investors that are living in the large cap world arena need to look at Chipotle and buy Chipotle, it has more upside than McDonald’s.”