After a 20% increase since the beginning of this year, at the current price of around $56 per share, we believe Chipotle Mexican Grill stock (NYSE: CMG), a fast-casual restaurant chain that focuses on fresh and organic ingredients in burritos, salads, and more - could see modest growth. CMG stock has increased from around $46 to $56 year-to-date, outperforming the broader indices, with the S&P growing about 17% over the same period.
Chipotle is building brand strength in the competitive restaurant industry. In recent years, the company has proven that it has pricing power.
Chipotle's stock has been sliding in the past few months. The company has recently announced a change in CEO after Starbucks lured away Brian Niccol.
Chipotle's stock sank after its CEO decided to leave for Starbucks. While his departure is a loss, he has left the company in very good shape.
Chipotle's CEO is leaving to take over at Starbucks after being with the company for six years. The restaurant chain's operating margins have increased by 1.4 percentage points in the past year.
CMG is hurt by online customer backlash over claims that the company reduced portion sizes while increasing prices.
Zacks.com users have recently been watching Chipotle (CMG) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Chipotle Mexican Grill Inc. said Wednesday that it was speeding up its leadership changeover process, after its top ranks were shaken up by its chief executive's pending departure for Starbucks Corp. and its chief financial officer's plans to retire.
U.S. labor board prosecutors have determined that a union's claims that Chipotle Mexican Grill illegally refused to give raises to workers at a Michigan restaurant after they became the first and only employees of the fast-casual chain to unionize have merit.
Chipotle's CEO has left to take over the top job at Starbucks. There's no guarantee the new leader, who will be carrying high expectations, will succeed.
Chipotle stock has skyrocketed since 2018 because its profits have soared. The company's new leadership will have to combat consumer perceptions that its portion sizes have shrunk, and doing so could cut into its profits.
Chipotle continues to demonstrate impressive performance despite industry pressure. It doesn't look like it was expecting its CEO Brian Niccol to leave right now.