Market Overview

Social Media Data Indicates Chipotle Is Primed For A Turnaround In 2017

Social Media Data Indicates Chipotle Is Primed For A Turnaround In 2017

After another disappointing year in 2016 following a disastrous string of food safety incidents in 2015, Chipotle Mexican Grill, Inc. (NYSE: CMG) shareholders are hoping that 2017 will finally bring the recovery they have been looking for. According to a recent presentation by Andy Swan, co-founder of social media data company LikeFolio, Chipotle investors have reason for optimism.

LikeFolio found that both consumer sentiment and purchase intent have finally begun trending in the right direction for Chipotle. Swan says sentiment is usually a leading indicator of purchase intent.

“In other words, customers are reacting to Chipotle’s delicious burritos again, rather than complaining about throwing up,” Swan joked.

While consumer sentiment seems to be on the upswing, purchase intent appears to have bottomed.

“Chipotle has all the social-data indications of a turnaround story in its beginning stages,” Swan added. That’s exactly the news Chipotle investors are hoping to hear.

As with any potential early-stage recovery, Swan will be watching for confirmation of the positive data in Q1.

So far, Chipotle shares are up 4.7 percent in the opening days of 2017. The stock remains roughly 50 percent below its all-time high of $758.61 back in mid-2015. The company’s revenue is down 15.4 percent since that time.


Related Articles (CMG)

View Comments and Join the Discussion!

Posted-In: Andy Swan LikeFolioLong Ideas Restaurants Crowdsourcing Trading Ideas General Best of Benzinga