- Chipotle stock could surge 14% in 2021 as the fast-casual Mexican food chain continues to grow during the pandemic, said a team of Wedbush analysts on Monday.
- Drivers of growth include traction in digital and delivery sales and continued menu innovation, including the introduction of cauliflower rice and lifestyle bowls, said the analysts.
- Shares of Chipotle have gained 65% over the last twelve months. The food chain climbed 1.3% on Monday.
- Watch Chipotle trade live here.
Chipotle is poised to accelerate in 2021, said a team of Wedbush analysts led by Nick Setyan in a note on Monday.
The analysts see the stock hitting $1,600 in 12 months, a 14% upside from current levels. They also hold an “outperform” rating for Chipotle. Shares of the fast-casual mexican chain gained as much as 1.3% on Monday. The stock is up 65% over the last twelve months.
Wedbush expects further growth for the company to come from growth in digital sales and delivery, especially as consumers order online to avoid in-store interactions during the pandemic. The analysts increased same store sales growth estimates for the fourth quarter of 2020 because of continued strength in digital and delivery sales.
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“Drivers of SSS growth remain traction in digital/delivery, continued menu innovation (quesadillas, cauliflower rice, lifestyle bowls), the potential benefits of growing loyalty membership, higher prices for delivery, higher marketing spend, and market share opportunities,” the analysts said.
They added that Chipotle’s new cauliflower rice bowl feature has been a “hit” and there’s been no observed consumer pushback associated with Chipotle’s 2-3% delivery price increase.
In a sign that the restaurant is seeing growth even during the pandemic, it announced on Monday it plans to employ 15,000 new team members via its first national hiring event of the year, “Coast to Coast Career Day.”