Unlike many of its quick serve rivals, the Mexican chain has managed to deliver the appearance of value without coming off as simply cheap. Eating at Chipotle has become an affordable indulgence rather than a compromise over eating at a fancier establishment.
By carefully crafting its image, the chain has managed to avoid the dollar menus and discounts which cut into the margins at most quick-serve (fast food) restaurants.EBITDA is set to increase for the next years;
Chipotle is set to continue to climb higher the coming years and we therefore give the stock a BUY-recommendation, with a target price of 900$ until Q1, 2020.
While there is some concern for downside given the current macroeconomic turmoil in the markets, this is solved with purchasing a protective ATM-put upon initiating the stock purchase.