Overall, based on statistics and current events, I will buy shares of Chipotle (CMG). Today the Chipotle stock is up $5.50 dollars from the opening price of $472.96 and closed yesterday at $471.76. The stock as of 12:21 pm on March 23rd is priced at $478.46. Within the past year the 52 week high and low drastically varies from $758.61 to $399.14. Thus indicating how volatile and unstable the stock has been in the last 12 months. However, the varies in the high and low of the stock are due to events in January concerning the E-Coli issue in chipotle. Now the stock has been on an overall rising trend from January 4th, 2016 and with the stock priced relatively low, it is a good time to buy shares. Also according to Michael Brush, writer for Market Watch, “At the low point this year, in the third week of January, comparable-store sales were down 40%. By the first week of March, that sales decline slowed to 21.5% (Brush)”. Also due to the recent health issues, Chipotle is offering free offers such as guacamole or buy one get one free to entice customers to pay for their service. This appeals to consumers want for coupons and low prices which could increases sales and the amount of customers. The stock is also a good buy right now because it has the potential to “more than double its size from 2000 restaurants to 5000 restaurants (Brush).”
Brush, Michael. “The case for buying the Chipotle Stock” Market Watch. Market Watch. Web. 23rd March 2016. http://www.marketwatch.com/story/this-is-even-more-attractive-than-chipotles-free-guacamole-and-chips-2016-03-23?siteid=yhoof2
Yahoo finance. "chipotle corporation." yahoo. Web. 23rd March 2016.http://finance.yahoo.com/q?s=CMG&ql=1
I give this a grade of 100. Melanie included long term and short term data and also mentioned why the stock has been volatile and unstable over the last year (E-Coli issue). I agree with Melanie's decision to buy the Chipotle stock. I agree because Chipotle has been gaining back its customers with its free offers. One of the main reasons why I and a few of my friends went to Chipotle this month for the first time since the E-coli issue is because of Chipotle's free offers. Also, Chipotle's food no longer has E-coli which will bring back even more of its customers. I predict that the Chipotle stock will rise up to $600 by the end of the year which is why I would buy it for a low price right now. Melanie's blog post can not be improved because it is great.
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