Chipotle Rallies, Long-term Outlook Remains Promising
publication date: Feb 7, 2024
Image Source: Valuentum.
We’re huge fans of Chipotle’s long-term growth runway, and we think the continued rollout of Chipotlanes offers the firm the ability to expand into the valuable breakfast daypart, which we think will come eventually. Its digital initiatives continue to work out well, too, with digital sales accounting for 36.1% of its total food and beverage revenue in the fourth quarter. Looking out to all of 2024, Chipotle expects full-year comparable restaurant sales growth in the mid-single-digit range and to add 285-315 new restaurants. The high end of our fair value estimate of Chipotle stands at $3,022 per share, and we continue to like shares in the Best Ideas Newsletter portfolio.
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