Chipotle Gains Despite Price Target Cut by Wedbush
2022.06.02 21:16
By Liz Moyer
Investing.com — Chipotle Mexican Grill Inc (NYSE:CMG) shares rose 1.5% on Thursday after Wedbush Securities cut its price target to $1,800 from $2,000, saying bad news has already been priced in.
Analyst Nick Setyan kept an outperform rating on the shares. Chipotle is down 20% this year, to around $1,396, though off its lows in May around $1,231.
The analyst added that much of the recent focus has been on menu price increases and the possibility of pushback from customers. But transaction trends for the burrito chain are positive. Food prices are still a cloud on earnings, and the analyst expects continued incremental price increases.
Separately, Restaurant Business reported that Chipotle customers can pay for their meals with Bitcoin and other cryptocurrencies through a payments system called Flexa.
People who have a digital wallet that integrates with Flexa can open the app, choose Chipotle and then scan a barcode to pay with any one of 100 currencies, the report said. Flexa settles the transaction with Chipotle in either fiat currency or crypto, it added.
