CHIPOTLE (#CHIPOTLE) weekly special report based on 1.00 Lot Calculation:
US FAST FOOD MARKET
- As of 2024, the fast-food industry in the U.S. is valued at approximately $367 billion. Over the next five years, the market is projected to expand at an average annual rate of about 2.5% to 3%. The largest companies in the sector are McDonalds, Subway, and KFC (Source: Yahoo Finance).
CHIPOTLE MEXICAN GRILL: THE COMPANY
- Chipotle Mexican Grill is an international chain of fast-casual restaurants specializing in bowls, tacos, and Mission burritos made to order in front of the customer. Fast-casual restaurants combine elements of fast food and casual dining. Chipotle has a market share of approximately 10% within the U.S. fast-casual dining segment. It was one of the first chains of fast casual dining establishments and as of March 2023, it has 3,200 restaurants. The company achieved 40 million reward members due to the company's investments in digital sales strategies.
CHIPOTLE: ANALYSIS AND NEWS
- CHANGE IN LEADERSHIP: The company announced on August 13 that Niccol would step down as CEO on August 31 to take over at Starbucks. COO Scott Boatwright will serve as interim CEO. Niccol, who has been Chipotle's CEO since 2018, is credited as a key factor in the company’s turnaround in recent years. The company's interim CEO, Scott Boatwright, has been with the company since 2017 and has most recently been its chief operating officer.
- EXPANSION STRATEGY: In a continued push for expansion and innovation, Chipotle is rapidly increasing its presence across the country. Chipotle opened 271 new stores in 2023 and expects to open an additional 285 to 315 stores this year. Over 80% of the planned new locations will include Chipotlanes—Chipotle's dedicated drive-thru lanes for digital pick-up orders.
- GROWTH PROSPECTS: Chipotle's recent earnings report highlights its strong growth prospects. For the quarter ending June 30, revenue rose by 18% to $3 billion, with same-store sales up 11%, driven by a 9% increase in transactions and a 2% boost from higher prices. In an industry where even single-digit growth is impressive, Chipotle's double-digit gains stand out. Over the past five years, the company has averaged a 16% growth rate, with recent results exceeding expectations, positioning Chipotle for continued success.
CHIPOTLE: OTHER ANALYSIS
- STOCK SPLIT 50 TO 1 (EXECUTED ON JUNE 26, 2024): Chipotle Mexican Grill, executed a 50-for-one split of its common stock on June 26, 2024. This is the first stock split for the company and one of the biggest stock splits in New York Stock Exchange history. As a reason for this, the company said it wants to make its stocks more accessible to employees and a broader range of investors.
- STOCK PERFORMANCE AFTER STOCK SPLIT (SOURCES: YahooFinance, Bloomberg, Fortrade MT4):
- Apple (STOCK SPLIT: 7-1 effective June 9, 2014): 3 Months: +8.69%. 6 Months: +19.26%.
- Tesla (STOCK SPLIT: 5-1 effective August 31, 2020): 3 Months: +28%. 6 Months: +53%.
- Nvidia (STOCK SPLIT: 4-1 effective July 20, 2021): 3 Months: +17.60%. 6 Months: +30%.
Please note that past performance does not guarantee future results
PRICE ACTION:
● ANALYST OPINION: NorthCoast Research’s price target is $73.0. Bernsteinis targeting $70.0. Citi targets $69, while Trust Securities targets $69.0.
● STOCK PRICE ACTION: Chipotle stock made its all-time high of adjusted $69.1 on June 18, 2024. Chipotle was last trading around $56.08, and if a full recovery follows to all- time highs, the stock could see an upside of around 23%. However, the price could go lower.
CHIPOTLE, September 03, 2024
Current Price: 56.08
|
CHIPOTLE |
Weekly |
|
Trend direction |
|
|
73.000 |
|
|
69.000 |
|
|
61.000 |
|
|
51.500 |
|
|
50.000 |
|
|
48.000 |
Example of calculation based on weekly trend direction for 1.00 Lot1
|
CHIPOTLE |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
84,600.00 |
64,600.00 |
24,600.00 |
-22,900.00 |
-30,400.00 |
-40,400.00 |
|
Profit or loss in €² |
76,513.93 |
58,425.53 |
22,248.73 |
-20,711.22 |
-27,494.37 |
-36,538.57 |
|
Profit or loss in £² |
64,472.81 |
49,231.01 |
18,747.41 |
-17,451.86 |
-23,167.54 |
-30,788.44 |
|
Profit or loss in C$² |
114,304.24 |
87,281.96 |
33,237.40 |
-30,940.51 |
-41,073.87 |
-54,585.01 |
- 1.00 lot is equivalent of 5 000 units
- Calculations for exchange rate used as of 09:10 (GMT) 03/09/2024
There is a possibility to use Stop-Loss and Take-Profit.
- You may wish to consider closing your position in profit, even if it is lower than suggested one.
- Trailing stop technique could protect the profit.