Stocks to invest in – Chipotle Mexican Grill, Inc. (CMG) Increases Prices for 440 Stores



Stocks to invest in

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?‘.

Disclosure:None

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