#5 - Chipotle (NYSE:CMG)
Chipotle (NYSE: CMG) - Chipotle is an amazing turnaround story. In 2015, the company began a three-year stretch where it was rocked by food safety issues that crashed the high-flying company and its stock. But those days seem to be behind it and the company has enjoyed a year in which their stock has nearly doubled. But the company is seeing less traffic, and it’s not the result of food safety. There’s an expression in sports, “don’t let them see your backup”. Unfortunately for Chipotle that looks like it may have happened. The fast-casual space that they helped invent is highly competitive. When Chipotle was “on the sidelines” taking its lumps over the e-coli scare among other issues, consumers left and found that they might like different options. For investors, this means that their profits are being generated by higher prices and that’s not sustainable. This points to their being a ceiling to the stock and it seems that Chipotle’s stock based on analysts’ views of forward earnings and EPS may be at that level.
About Chipotle Mexican Grill
Chipotle Mexican Grill, Inc, together with its subsidiaries, owns and operates Chipotle Mexican Grill restaurants. It sells food and beverages through offering burritos, burrito bowls, quesadillas, tacos, and salads. The company also provides delivery and related services its app and website. It has operations in the United States, Canada, France, Germany, and the United Kingdom.
Read More - Current Price
- $61.87
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 18 Buy Ratings, 9 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $66.55 (7.6% Upside)
