RBC Reiterates Bullish Stance On Chipotle After Positive Review Of Honey Chicken: Retail Traders Bullish

RBC Capital Markets has maintained its bullish position on Chipotle Mexican Grill, Inc. (CMG) based on positive checks on the food brand's new menu item and efficiency initiatives.

In a recent note, the research firm said the Chipotle Honey Chicken (CHC), introduced in North America and Europe earlier this month for a limited time, positively impacted demand and traffic at its outlets.

"We found the initial feedback encouraging," RBC analysts said in the note put out on Sunday.

RBC maintained its 'Outperform' rating and a $70 price target on the company's shares.

The brokerage also discussed a few updates from its meeting with Chipotle’s investor relations team.

Notable updates were regarding the cost of new equipment retrofits, which may be less expensive than Chipotle previously communicated. 

However, the anticipated labor savings from implementing the Hyphen system might be more limited than initially expected.

Chipotle is testing a semi-robotic "augmented makeline" in collaboration with Hyphen, a food robotics company, to automate the preparation of bowls and salads.

In December, RBC named Chipotle one of its top picks for 2025.

In recent months, Stifel and Bernstein have lowered their price targets on Chipotle stock. Loop Capital upgraded its rating to a 'buy'.

On Stocktwits, retail sentiment held firmly in the 'bullish' territory, with high message volume.

One user posted screenshots showing large buy orders for Chipotle stock.

CMG shares are down nearly 18% year to date to $49.60, in touching distance of their 52-week low of $46.

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