What's Behind Chipotle Mexican Grill's Share Price Jump?
Chipotle Mexican Grill, Inc. (NYSE:CMG) shares are up nearly 4% so far this week, trading north of $1,000 per share.
This comes just two months after the stock fell below $500.
On Monday, Wedbush analyst Nick Setyan maintained an Outperform on Chipotle and raised the price target from $870 to $1,200.
Wedbush revised its estimates for second-quarter same-store sales from a 20% decline to a 9% decline.
Chipotle reported substantial growth in its digital order volume during the start of the COVID-19 outbreak, with same-store online sales increasing by 81%.
What's Next For Chipotle
In Wedbush's view, Chipotle will return to pre-coronavirus same-store sales growth by 2021.
Chipotle has focused heavily on digital sales in the past. Ninety-seven percent of Chipotle stores are accessible through third-party apps such as Uber's (NYSE:UBER) Uber Eats and Grubhub (NYSE:GRUB).
Chipotle also has a track record of innovative marketing campaigns. Most recently, Chipotle has jumped on TikTok.
Chipotle launched a marketing campaign to select one winner to receive free food for an entire year using TikTok and YouTube star David Dobrik. The trending hashtag #Chipotlesponsorme was used in more than 2.7 million videos.
CMG Price Action
Chipotle shares were trading slightly higher at $1,050.01 at the time of publication Thursday.
Photo courtesy of Chipotle.
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