Photo: Christopher R. via Yelp
Wall Street is buzzing about Chipotle’s monster first quarter, which was driven by a 12.7 per cent jump in same-store sales.Good for them. They’re officially the hottest burrito chain, if not the hottest fast-food chain, in America.
The stock is up a whopping 400 per cent in the last 3 years. And now everyone wants to know, which company could be the next Chipotle.
The answer to that question might be ShopHouse, the hot new chain of Asian-themed restaurants.
And the owner of ShopHouse is none other than Chipotle.
Here’s some bullish comments from Deutsche Bank’s Jason West:
Where’s the next Chipotle? Perhaps right here. CMG posted another solid result, with comps and margins ahead of expectations. Perhaps most important from the call, CMG indicated that ShopHouse (new Asian concept) unit economics are similar to Chipotle, and sales volumes continue to build post initial buzz. Combination of strong fundamentals, significant runway for core concept, and option on a second concept justifies elevated valuation, in our view. Maintain Buy
West has $480 price target for CMG.
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