As college students make their way back to school for another year, Chipotle Mexican Grill, Inc. (NYSE:CMG) is making it easier for students to find the food they love, allowing more time for study and less to search for burritos. Through a new partnership with Tapingo, a leading mobile commerce app that saves college students time by providing food pickup and delivery, Chipotle will be available for delivery through Tapingo at 40 college campuses nationwide this fall, and at more than 100 campuses by spring 2016.
The partnership with Tapingo expands Chipotle’s existing delivery program. The company also has nationwide delivery partnerships with Postmates, a delivery service that operates in several key Chipotle markets, and with OrderUp, which provides delivery service in several smaller Chipotle markets.
“Chipotle has been popular with students going back to our very first restaurant near the University of Denver, and we are always looking for ways to better engage with them,” said Mark Crumpacker, chief creative and development officer at Chipotle. “Tapingo, which has been well received by students where its services are available, knows how to connect with these younger customers. That shared acceptance among younger customers made them a great choice for us to expand delivery aimed specifically at students.”
Tapingo has a rapidly growing user base, the large majority of whom are Millennials and Gen Zs. Chipotle resonates well with a similar audience. A recent survey by investment firm William Blair called Chipotle the “most favored restaurant” by younger consumers. Morgan Stanley notes that Millennials are more likely to dine out on a weekly basis than older consumers and states that “taste, value, and quality” drive their restaurant decision-making. “On those metrics, Chipotle wins,” the firm says.
“Tapingo has become the buy button for students and we are excited to expand into surrounding areas,” said Daniel Almog, chief executive officer at Tapingo. “Our network of students is hungry for Chipotle, and we’re excited to deliver it quickly and at a very reasonable delivery cost.” (Original Source)
Shares of Chipotle Mexican Grill closed yesterday at $710.01. CMG has a 1-year high of $758.61 and a 1-year low of $597.33. The stock’s 50-day moving average is $720.98 and its 200-day moving average is $663.37.
On the ratings front, Chipotle Mexican Grill has been the subject of a number of recent research reports. In a report issued on August 24, Wedbush analyst Nick Setyan maintained a Hold rating on CMG, with a price target of $740, which represents a slight upside potential from current levels. Separately, on July 23, Argus’ John Staszak reiterated a Buy rating on the stock and has a price target of $810.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Nick Setyan and John Staszak have a total average return of 13.8% and 15.2% respectively. Setyan has a success rate of 61.0% and is ranked #347 out of 3742 analysts, while Staszak has a success rate of 71.8% and is ranked #48.
The street is mostly Bullish on CMG stock. Out of 17 analysts who cover the stock, 11 suggest a Buy rating and 6 recommend to Hold the stock. The 12-month average price target assigned to the stock is $732.31, which represents a slight upside potential from current levels.
Chipotle Mexican Grill Inc operates Chipotle Mexican Grill restaurants, which serves a menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads, made using fresh ingredients.