RBC Capital Remains Positive On Chipotle (CMG)

RBC Capital maintains Outperform on Chipotle Mexican Grill (NYSE: CMG), keeps price target of $465.00.

Analyst David Palmer comments "Through the use of credit card data analytics, Chipotle is able to see the number of lapsed, new, and retained customers. While the company may not have the capabilities to target individual lapsed users of the brand, it can take a grass-roots approach towards onboarding new users onto the brand including local fundraisers, which have proven to have a high return rate (e.g. 20% of those that come in for a fundraiser return within a month). And while there is no shortage of well-funded/ emerging fast casual competition, Chipotle still believes it has a huge opportunity to convert users of traditional fast food into Chipotle consumers. In addition, the company's digital ordering mix has improved to 7.4% of sales in December—its highest mix since before the crisis—as the company began to allocate marketing dollars towards digital and opened up the capability for digital catering orders. As always, Chipotle will limit the number of new items it adds to the menu in the future, but the company has signaled a willingness to add a dessert offering in the near future."

For an analyst ratings summary and ratings history on Chipotle Mexican Grill click here. For more ratings news on Chipotle Mexican Grill click here.

Shares of Chipotle Mexican Grill closed at $414.48 yesterday.

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