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Fly News Breaks for March 4, 2020
Mar 4, 2020 | 06:35 EDT
Wells Fargo analyst Jon Tower upgraded Chipotle Mexican Grill to Overweight from Equal Weight with a price target of $1,000, up from $868. The shares closed Tuesday down 4%, or $31.99, to $736.07. Chipotlane stores, which will account for over 50% of new stores in 2020, are set to accelerate the company's move back toward all-time high store-level sales, margins and returns, Tower tells investors in a research note. This is not appreciated by the market, contends the analyst. When coupled with a "multitude" of same-store-sales drivers, including new products, loyalty, growing marketing and operational initiatives, Tower has greater confidence in Chipotle reaching new highs for system average unit volumes and regaining historical highs for store-level margins. He believes the company's growth is "on sale" following the recent share pullback