Wedbush Cuts Price Target On This Fast-Casual Restaurant Chain - Read Why - Chipotle Mexican Grill (NYSE:CMG)

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

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