Chipotle Mexican Grill
Chipotle Mexican Grill
CMG
0.78% 
8%IBD Stock Analysis
- Chipotle stock is heading toward a 1366.76 buy point.
- Shares also briefly crossed a 1,346.10 early entry intraday Monday.
- The stock broke through a short-term trend line last week.
Industry Group Ranking
Emerging Pattern
Double Bottom
* Not real-time data. All data shown was captured at 12:01PM EST on 12/07/2020.
Mexican fast-casual chain Chipotle Mexican Grill (CMG) is the IBD Stock of the Day. Chipotle stock is moving toward a buy point, after crossing an early entry.
XThe stock is setting up after Chipotle rose for much of the year, aided by its pickup, digital-order drive-thrus and delivery service during the coronavirus pandemic.
But it has faced higher costs recently. And the restaurant industry faces further shutdowns as cases rise, even as the nation prepares for a vaccine.
Chipotle Stock
Chipotle stock rose 0.7% to 1343.49 in the stock market today. Shares are heading toward a 1366.76 buy point of a double-bottom base.
Intraday Monday, the stock also briefly crossed a 1,346.10 early entry. The stock had trended lower, after reaching 1366.66 on Oct. 21. But increases last week helped Chipotle break a short-term line and bounce above support at the 50-day line.
Chipotle stock has a 72 Composite Rating and a 49 EPS Rating. The stock's relative strength line is off a peak that it reached in September.
The company's third-quarter earnings, reported in October, beat expectations. But higher delivery and food costs hurt margins. Same-store sales, at times, ran up against the popularity of last year's nationwide carne asada rollout.
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Chipotle Enjoys 'Digital Moat'
However, Cowen analyst Andrew Charles this month called Chipotle stock one of the firm's best ideas for next year.
"In our view, CMG's symbiotic playbook focused on digital, loyalty, social responsibility & menu innovation will drive upside to 2021 comps as we model 12.5% vs 11% consensus," he said.
"We argue CMG's digital moat will continue to bear fruit, with an estimated 12.4% contribution to 2021 comps, fueled by a digitally-enabled second-make line that effectively doubles kitchen capacity to accommodate digital orders," the note continued. "CMG is poised to benefit as consumers naturally shift over time to frictionless & convenient digital-ordering for pickup, the highest margin order stream."
The chain is also testing smoked brisket. It also recently opened a restaurant geared solely toward digital ordering.
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Chipotle Stock Offers Multiple Entry Points, Despite Industry Uncertainty - Investor's Business Daily
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