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What's Behind Chipotle Mexican Grill's Share Price Jump?

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·2 min read
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Chipotle Mexican Grill, Inc. (NYSE: CMG) shares are up nearly 4% so far this week, trading north of $1,000 per share.

This comes just two months after the stock fell below $500.

On Monday, Wedbush analyst Nick Setyan maintained an Outperform on Chipotle and raised the price target from $870 to $1,200.

Wedbush revised its estimates for second-quarter same-store sales from a 20% decline to a 9% decline. 

Chipotle reported substantial growth in its digital order volume during the start of the COVID-19 outbreak, with same-store online sales increasing by 81%.

What's Next For Chipotle 

In Wedbush's view, Chipotle will return to pre-coronavirus same-store sales growth by 2021. 

Chipotle has focused heavily on digital sales in the past. Ninety-seven percent of Chipotle stores are accessible through third-party apps such as Uber's (NYSE: UBER) Uber Eats and Grubhub (NYSE: GRUB).

Chipotle also has a track record of innovative marketing campaigns. Most recently, Chipotle has jumped on TikTok.

Chipotle launched a marketing campaign to select one winner to receive free food for an entire year using TikTok and YouTube star David Dobrik. The trending hashtag #Chipotlesponsorme was used in more than 2.7 million videos.

CMG Price Action 

Chipotle shares were trading slightly higher at $1,050.01 at the time of publication Thursday. 

Photo courtesy of Chipotle. 

 

Latest Ratings for CMG

Jun 2020

Wedbush

Maintains

Outperform

May 2020

ScotiaBank

Maintains

Sector Perform

May 2020

Deutsche Bank

Initiates Coverage On

Hold

View More Analyst Ratings for CMG
View the Latest Analyst Ratings

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