Shares of Chipotle Mexican Grill (NASDAQ:CMG) are hovering near highs on the back of an incredibly strong first-quarter earnings beat in April. Despite the hot run and the risk of a looming recession, many analysts are sticking with the stock, and it’s not hard to see why. The company has built a fairly respectable moat around its corner of the quick-service restaurant scene.
When it comes to relatively healthy, high-quality offerings, Chipotle stands out. Although its pricier offering could put it at a competitive disadvantage relative to more value-conscious offerings — think McDonald’s (NYSE:MCD) — in the face of a recession, I do view the long-term growth story as one of the best in the industry. For that reason, I’m staying bullish on the stock.
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