Chipotle Mexican Grill (NYSE: CMG) is testing beef brisket in 68 stores, and in all the stores the brisket is priced significantly above the normal steak offering and even the premium Carne Asada, Truist Securities analyst Jake Bartlett notes.

Bartlett notes research which shows brisket is being tested in 21 California Chipotle stores, 1 in Indiana, 11 in Kentucky, and 35 in Ohio. The brisket is priced $1.20 above the normal steak offering and replaces the Carne Asada which is priced at a $1 premium.

Chipotle noted in their first-quarter conference call that they were developing a Brisket offering and that the market test is encouraging. However, Bartlett notes that the company has been disciplined with its "stage-gate" testing process and any national rollout may take a while.

Despite the slow roll-out, the analyst is encouraged at the pricing which helps margins. "We are encouraged by the higher pricing of Brisket, which suggests that CMG remains focused on driving margins back to its LT target and believes it has pricing power," the analyst commented.

reiterated a Buy rating and $1,520.00 price target on

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Shares of Chipotle Mexican Grill closed at $1310.32 yesterday.