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Benzinga
Benzinga
Business
Shivani Kumaresan

Wedbush Cuts Price Target On This Fast-Casual Restaurant Chain - Read Why

  • Wedbush analyst Nick Setyan lowered the price target on Chipotle Mexican Grill Inc (NYSE:CMG) to $1,800 (30% upside) from $2,000 and maintained an Outperform rating on the shares.
  • The analyst noted CMG is poised to see accelerated market share gains in a post-COVID environment, resulting in sustained growth above pre-COVID levels.
  • Setyan said the recent focus has been on the company’s outsized menu price increases and the potential pushback from customers. Yet transactions remain positive, the analyst added.
  • Nick said about 5% of domestic units are heavily urban, and the outsized top-line recovery in these units should contribute to transaction growth.
  • He expects incremental price increases as needed beyond the second quarter and noted that the relative grocery inflation would be a major determinant of pricing power.
  • Price Action: CMG shares traded higher by 0.67% at $1,383.87 on the last check Thursday.
  • Photo Via Company
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