CMG stock continues to move higher for the fourth straight session after an analyst at Goldman Sachs set a bullish target on the shares of Chipotle Mexican Grill Inc (NYSE:CMG).

Goldman Sachs Sets $1,000 PT

There are plenty of big-ticket fast food and restaurant stocks going around, but only a handful are counted among the ones that are going to grow for years to come. In that regard, Chipotle is certainly one of these, and in a new development, Goldman Sachs has named it one of the best restaurant stocks to watch at the moment. In addition to that, it has given a price target of $1,000 for CMG stock and has also initiated coverage of the Chipotle stock, giving it a Buy rating.

Since around 2015, Chipotle seemed to be one of the has-beens in the restaurant industry, but since then it has turned around its business significantly, and this year, the stock has been on a hugely impressive run.

In 2019 alone, Chipotle’s stock has gained as much as 80%, and if Goldman’s analysis is to come true, then there is a 28% upside as of now. Goldman’s Katherine Fogertey stated that Chipotle has grown its digital channels considerably and has been able to transfer that into much higher sales.

At the time of writing, CMG stock is up 2.89% and now trading at $802.72 after hitting an all-time high of $811.95 earlier in the session.

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As a matter of fact, the sales from its stores have now gone beyond the peak that it had reached back in 2014. Sales through digital channels grew by a whopping 99.1% and accounted for 18.2% of the entire sales in the latest quarter. Fogertey went on to state in her report that full-year sales growth should rise by 10.1% this year and then by 8% in the next.

However, there are other macro trends that are also responsible for the immense sales growth that Chipotle is currently enjoying. Fogertey stated that the explosion of food delivery services, high consumer spending on restaurants, and the company’s own digital initiatives have combined to produce this strong growth. More importantly, these factors have not only raised the number of orders from Chipotle but gone on to raise the size of the transactions as well. Investors should keep an eye on CMG stock over the coming weeks.

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