Wedbush Cuts Price Target On This Fast-Casual Restaurant Chain - Read Why

  • Wedbush analyst Nick Setyan lowered the price target on Chipotle Mexican Grill Inc CMG to $1,800 (30% upside) from $2,000 and maintained an Outperform rating on the shares.
  • The analyst noted CMG is poised to see accelerated market share gains in a post-COVID environment, resulting in sustained growth above pre-COVID levels.
  • Setyan said the recent focus has been on the company’s outsized menu price increases and the potential pushback from customers. Yet transactions remain positive, the analyst added.
  • Nick said about 5% of domestic units are heavily urban, and the outsized top-line recovery in these units should contribute to transaction growth.
  • He expects incremental price increases as needed beyond the second quarter and noted that the relative grocery inflation would be a major determinant of pricing power.
  • Price Action: CMG shares traded higher by 0.67% at $1,383.87 on the last check Thursday.
  • Photo Via Company

Posted In: BriefsAnalyst ColorEarningsNewsPrice TargetReiterationAnalyst Ratings

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.