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Fly News Breaks for October 26, 2016
CMG
Oct 26, 2016 | 07:39 EDT
As previously reported, Credit Suisse downgraded Chipotle to Neutral from Outperform and lowered its price target to $375 from $500. Analyst Jason West said Chipotle is still struggling with the larger population of casual consumers, especially on the coasts, and is testing national TV ads for the first time and increasing the frequency of new menu items. West said this is a departure from its historical strategies of simplified menus and limited marketing spend, suggesting Chipotle has lost a meaningful piece of its core identity. The analyst is now less confident in comps and believes the core growth model has changed.
News For CMG From the Last 2 Days
CMG
Mar 26, 2024 | 07:58 EDT
Bernstein raised the firm's price target on Chipotle to $3,200 from $2,800 and keeps an Outperform rating on the shares. Citing the recent launch of Chicken Al Pastor and momentum in in-store execution, the firm believes that the fundamental setup for 2024 is stronger and updated its same-store sales growth estimate to about 7% for 2024. The firm expects that Chipotle will reach $4M in average unit volume, or AUV, in five to six years, which it notes is ahead of consensus.