Chipotle is a High-Performance Restaurant Stock

ChipotleSome restaurants are struggling during the Coronavirus Pandemic, but the largest fast and quick-service food chains have adapted to the conditions. Chipotle Mexican Grill Inc. (NYSE: CMG) is one of the companies that has outperformed expectations, and its stock could provide significant returns in 2020.

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Chipotle operates a fast-casual restaurant chain specializing in Mexican and South-Western inspired meals. It is based in California and operates more than 2,000 restaurants across the United States.

The company has introduced digital ordering during the health crisis to ensure it can serve its customers even in regions where restaurant dining is prohibited. It has been aggressively pushing its rewards program in recent months. In the previous 30-days, program sign-ups have increased 4x. In its first fiscal report for the year, the company announced that digital sales had increased 81% year over year, contributing to just over a quarter of total sales.

The stock has grown 35% in the year to date, blazing past analyst estimates. If the company can maintain its momentum throughout the year, even in the face of state lockdowns, it could continue to grow as the market recovers. This is a top restaurant pick for the third quarter and long term.

Key Data:

  • 1 Year Price Growth: 38%
  • YTD Price Growth: 42%
  • 3 Month Price Growth: 09%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

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