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Investing.com — Shares of American restaurant chain Chipotle Mexican Grill Inc (NYSE:CMG) fell Monday following the announcement that the company is launching plant-based chorizo for a limited time.
Chipotle shares are down 3.5%, to $1,687.
Following the announcement, Stephens analyst James Rutherford was positive on the launch. He told investors in a research note that it laps the company’s previous cilantro-lime cauliflower rice offer and that the chorizo product received promising reviews in August in Denver and Indianapolis.
Rutherford stated it is a “noteworthy innovation that will continue to drive traffic and check.”
Elsewhere, Piper Sandler analyst Nicole Miller Regan said Chipotle is one of the firm’s top restaurant picks, although the year is “unlikely to be without its challenges.”
“We view CMG shares as the dominant large-cap growth investment option within the restaurant industry. While acceleration of new unit openings is likely to prove the dominant factor, menu (price alongside new items), marketing (digital included), and ongoing share repurchase also serve as potential catalysts,” explained Regan in a note to investors.
