Chipotle Mexican Grill's (CMG) 8 Actions to Boost Comps - Cowen

Cowen analyst Andrew Charles reiterated an Outperform rating and $1,000.00 price target on Chipotle Mexican Grill (NYSE: CMG) offering 8 tangible sales considerations that give the analyst confidence in some degree of protection for 1Q20 and 2020 comps.

1) CMG already has the infrastructure to support off premise demand as over 2/3 of orders are consumed as takeout

2) Chipotle Rewards is starting to utilize more personalized efforts in 2020 to help drive sales.

3) Queso 2.0 could contribute ~100 bps to comps

4) Leap day helps 1Q20 comps

5) $0 delivery fee on Sundays in Feb (including superbowl) will boost comps

6) The company launched TikTok collaborations with 9 influencers during Superbowl commercial breaks, locking in Superbowl like visibility for a fraction of the price

7) USA Hockey BOGO Promotion where customers received a free item when wearing a hockey jersey in store

8) Supergreens salad mix shift where the company shifted to a new salad blend that includes romaine, baby kale and baby spinach, from the prior romaine

The analyst stated "We are not calling shares' bottom given growing angst around COVID-19, but highlight CMG is at the top of our shopping list for those looking to deploy capital in the current backdrop".

For an analyst ratings summary and ratings history on Chipotle Mexican Grill click here. For more ratings news on Chipotle Mexican Grill click here.

Shares of Chipotle Mexican Grill closed at $601.88 yesterday.

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