Chipotle: Website Visits Show Upward Trends
Jhe COVID-19 pandemic has crippled most industries, but some have been able to recover thanks to their strategic digital platforms. Chipotle Mexican Grill, Inc. (New York Stock Exchange: CMG) is one such food restaurant chain operator that has benefited greatly from digital sales.
So should investors park their funds in these restaurant businesses to stay afloat?
Amid the market sell-off due to economic uncertainties, it becomes difficult to make sound investment decisions. Each individual does their own due diligence before making investments, but valuable insights into stock picking are a plus.
As a result, TipRanks’ new website traffic filter can guide investors in decision-making to some extent. The tool shows an estimate of consumer visits to company websites and its correlation to the stock price.
The tool shows that web traffic is increasing significantly for Chipotle. The increase in visits indicates the popularity of the website and highlights the fact that the company is trending among individuals.
In April, total visits to chipotle.com represented a 19.55% year-over-year increase. Additionally, May saw more website clicks and saw a whopping 83.72% jump from the prior year quarter.
Encouragingly, year-to-date website growth, compared to year-to-date website growth, was 58.64% for Chipotle. Meanwhile, compared to the first quarter, website traffic is trending up so far in the second quarter, representing an increase of 49.34%.
And then ?
Additionally, management is positive about the company’s growth prospects. He expects comparable restaurant sales growth in the second quarter to be between 10% and 12%.
The company also plans to open about 235 to 250 new restaurants, which bodes well for long-term growth prospects.
The Taking of Wall Street
Recently, Stifel Nicolaus analyst Chris O`Cull reiterated a buy rating on the stock.
In its recent report, Cull wrote, “We believe the brand can continue to drive sales using new menu insights, digital engagement, and continued operational improvements.”
Overall, the rest of the street is cautiously bullish on the stock, with a moderate buy consensus rating based on 13 buys and six holds. Chipotle’s average price target of $1,768.44 implies an upside potential of 29.77%. Shares have lost 19.4% so far this year.
The growing demand for online food ordering in this digital world seems to be reflected in the growing trends of the company’s website. In addition, management’s expectations and future plans are encouraging. However, inflationary pressures and cost issues remain a concern.
Learn more about how the Website Traffic Tool can help you with your investment research.
Read full disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.