Chipotle Mexican Grill (CMG) Will Launch New High-Protein Menu

Restaurant chain Chipotle Mexican Grill (CMG) is getting into the snack business in order to help boost demand and adapt to changing customer habits. Starting on Tuesday, December 23, the company will launch a new “High Protein Menu” in the U.S. and Canada that will feature four-ounce grab-and-go cups filled with adobo chicken or steak. These smaller, protein-packed items are meant to appeal to customers who want quick, high-protein options instead of full meals. Interestingly, the move comes at a challenging time.

Chipotle recently lowered its full-year same-store sales outlook for the third quarter in a row. This caused Wall Street analysts cut their price targets due to falling traffic, especially among customers aged 25 to 35, and less confidence in a quick recovery. At the same time, fast-casual restaurants are struggling with inflation, and Chipotle is facing a “value perception” issue, as some diners mistakenly lump it in with more expensive options, even though its average entrée costs around $10.

Beyond the cups, the High Protein Menu includes meals like the Double High Protein Bowl and the High Protein-High Fiber Bowl, with each item offering 15 to 81 grams of protein. It is worth noting that high-protein diets are now the most popular eating trend in the U.S., with 70% of people saying that they prioritize protein. The menu also responds to the rising use of GLP-1 weight-loss drugs, which encourage smaller, protein-focused meals.

Is CMG Stock a Good Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on CMG stock based on 19 Buys, six Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average CMG price target of $45.39 per share implies 17% upside potential.

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