With shares of Chipotle Mexican Grill (NYSE:CMG) trading around $320, is CMG an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
C = Catalyst for a Stock’s Movement
Chipotle Mexican Grill develops and operates fast casual and fresh Mexican food restaurants. The restaurants primarily offer fresh burritos, tacos, burrito bowls, and salads. What makes this restaurant chain special? They make the food as consumers watch and only use sustainability raised food. With health, fitness, and social responsibility taking the center stage, Chipotle Mexican Grill is well-positioned to capitalize on this trend.
T = Technicals on the Stock Chart are Strong
Chipotle Mexican Grill saw a monster run in its stock beginning in late 2008. In fact, the stock grew over 780 percent in just about 3 years! Chipotle Mexican Grill stock suffered some criticism last year which fueled a strong decline in the stock. However, the long term chart is still holding a trend of higher highs and higher lows. The stock has seen a strong bounce in recent months so look for this price trend to continue.