"In the past month, Chipotle Mexican Grill Inc. ( NYSE: CMG) brought back its popular Carne Asada offering for a limited time and announced its "Chip-or-Treat" promotion. And in that time, the stock began to recover after recently reaching a 52-week low of $38.30. The share price is 31.1% lower than at the beginning of the year, underperforming the S&P 500 in that time."
"Analysts remain optimistic, though. On average, they recommend buying shares and have a consensus price target that suggests almost 30% upside in the next year. Chipotle Mexican Grill has developed a large Gen-Z following, along with its loyal customers, who appreciate the health-conscious menu and the dining experience that falls between fast food and fine dining."
"Nevertheless, investors are concerned with future stock performance over the next decade. Although most Wall Street analysts provide 12-month forward projections, it is clear that no one can predict the future with certainty, and unforeseen circumstances can render even near-term forecasts irrelevant. 24/7 Wall St. aims to present some farther-looking insights based on Chipotle's own numbers, along with business and market development information that may be of help with your own research."
Chipotle brought back Carne Asada and launched a "Chip-or-Treat" promotion while its stock began recovering from a 52-week low of $38.30. The share price remains 31.1% lower year-to-date, underperforming the S&P 500, while analysts on average recommend buying with a consensus target implying roughly 30% upside. Chipotle has a large Gen-Z following and loyal customers who value a health-conscious menu and a dining experience between fast food and fine dining. The company offers burritos, tacos, and salads and sources organic produce and responsibly raised beef and chicken. Investors worry about decade-long performance amid inflation, fluctuating food costs (notably dairy and avocados), rising labor costs, weaker consumer spending affecting traffic and sales, and intense fast-casual competition.
Read at 24/7 Wall St.
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