McDonald’s Who? 5 Reasons Why Chipotle Is a Delicious Food Stock
It’s been a while now that analysts have been singing the praises of Mexican fast food chain, Chipotle Mexican Grill (NYSE:CMG). While many of the company’s competitors – McDonald’s (NYSE:MCD), Burger King (NYSE:BKW), and Taco Bell (NYSE:YUM) – have suffered slipping sales, Chipotle’s business has been stronger than ever, and that led Belus Capital’s Brian Sozzi to upgrade shares of Chipotle from Hold to Buy on Wednesday morning, also raising his price target from $500.00 to $600.00.
Benzinga reported the news later on Wednesday and highlighted the timing of Sozzi’s note that came just weeks after Chipotle’s impressive fourth-quarter results. Sozzi now believes that the company’s stock is “destined to hit $1000,” and the analyst cited a number of reasons this week why he and his fellow analysts are so optimistic about Chipotle. Though he had both short-term and long-term rationalizations for the Street’s confidence, we’ll sum up his top five.
1. Switch to a non-GMO menu
This is a big one for Chipotle, as it is one of the first restaurants that has committed to eventually offering its customers a complete GMO-free menu. GMOs, or genetically modified organisms, have drawn significant attention from health-conscious consumers as of late, and now that more and more Millenials are watching what they eat, Chipotle’s commitment to going GMO-free makes the restaurant especially appealing to them. Though there is still no conclusive evidence that GMOs are harmful to humans, many customers still feel better eating fast-food knowing that it is GMO-free, and that is what has kept Chipotles’ lines long and its consumers loyal.
Thanks to social media and good old-fashioned word of mouth, news have traveled fast that Chipotle is committed to its consumers’ health, and customers have rewarded Chipotle by continuing to support its business. Thanks in part to its new commitment, Sozzi is confident that this trend is one that is here to stay.