Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Chipotle Mexican Grill, Inc. (CMG) Increases Prices for 440 Stores

Chipotle Mexican Grill, Inc. (NYSE:CMG) shares have inched up 0.7% after Bloomberg reported the burrito chain increased its menu prices by around 5% at 440 locations on April 11. Although Chipotle Mexican Grill, Inc. (NYSE:CMG has no plans at the current moment for similar price increases company-wide, the fact that Chipotle is actually raising prices at all indicates that demand is coming back for the Mexican burrito chain, at least in some parts of the country. In past years, Chitpole’s reputation has taken a hit due to food safety issues. The company has since fixed the problem, and customers are slowly coming back.

As it stands, Chipotle isn’t exactly cheap with a forward P/E of around 40. If demand returns to prior levels and management executes, however, the company could be a good long term investment.

What Does The Smart Money Sentiment Say?

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years (see details here).

Of the 742 elite funds we track, 36 funds owned $2.8 billion of Chipotle Mexican Grill, Inc. (NYSE:CMG) and accounted for 25.60% of the float on December 31, versus 41 funds and $1.6 billion respectively on September 30. Of those 36 elite funds, Bill Ackman‘s Pershing Square is the most prominent, with the activist investor working behind the scenes to accelerate Chipotle’s turnaround.

The Bottom Line

Chipotle Mexican Grill, Inc. (NYSE:CMG) is trending due to the chain raising prices at 440 stores. For more reading, check out ‘Moe’s vs Chipotle vs Qdoba & Others: Where People Are Eating?‘.

Follow Chipotle Mexican Grill Inc (NYSE:CMG)
Trade (NYSE:CMG) Now!


mexican, grill, exterior, corner, sign, building, outdoor, vegetarian, windows, street, brick, brand, name, restaurant

Susan Law Cain /

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
This is a FREE report from Insider Monkey. Credit Card is NOT required.