Why Chipotle Mexican Grill Inc. Stock Dropped Today
Shares of Chipotle Mexican Grill Inc. (NYSE: CMG) declined 5.4% on Friday after an analyst at Cowen downgraded the fast-casual burrito chain. More specifically -- and though we usually take Wall Street's demands with a grain of salt -- Cowen's Andrew Charles lowered his rating for Chipotle to underperform from market perform, and simultaneously reduced his per-share price target to $250 from $370. Chipotle stock closed today at almost exactly $300 per share.
IMAGE SOURCE: CHIPOTLE MEXICAN GRILL.
To justify his pessimism, Mr. Charles pointed to a proprietary survey of 2,500 consumers that indicated that perception of Chipotle's quality and value are close to their lowest levels since the company's big food-safety scare in 2015. Charles also expressed doubt that Chipotle's nationwide queso rollout will bolster sales, and argued that its planned price increases at this stage would be "imprudent."
Source: Fool.com
Chipotle Mexican Grill Inc. Stock
The stock is one of the favorites of our community with 73 Buy predictions and 1 Sell predictions.
With a target price of 2425 € there is potential for a 5184.95% increase which would mean more than doubling the current price of 45.89 € for Chipotle Mexican Grill Inc..
