According to an announcement by Chipotle Mexican Grill Inc (CMG) on Tuesday, it intends to form a partnership with delivery service DoorDash, as the company seeks to cope with decreasing traffic at its restaurants following several food safety incidents.
The burrito chain also said that the new delivery service would be available nationwide via its website and app, with DoorDash being the last mile delivery partner.
Chipotle shares closed lower for a second consecutive trading session in New York on Tuesday. The stock edged down 0.30% ($1.51) to $494.09, after touching an intraday low at $493.42, or a price level not seen since August 14th ($485.01).
Shares of Chipotle Mexican Grill Inc have surged 70.95% so far in 2018 compared with an 8.37% gain for the underlying index, S&P 500 (SPX).
In 2017, Chipotle’s stock retreated 23.40%, thus, it underperformed the S&P 500, which registered a 19.42% return.
Customers will have any order of $10 or more delivered to them free of charge for a limited time, Chipotle said. The delivery service will be available at more than 1 800 Chipotle restaurants, which are currently served by DoorDash.
The new service comes as part of CEO Brian Niccol’s plan to turn the company around, after its reputation as well as share price have been adversely affected by a number of food safety lapses.
According to CNN Money, the 25 analysts, offering 12-month forecasts regarding Chipotle Mexican Grill Inc’s stock price, have a median target of $450.00, with a high estimate of $600.00 and a low estimate of $330.00. The median estimate represents an 8.92% downside compared to the closing price of $494.09 on August 28th.
The same media also reported that 18 out of 33 surveyed investment analysts had rated Chipotle Mexican Grill Inc’s stock as “Hold”, while 8 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, todays levels of importance for the Chipotle stock are presented as follows:
R1 – $494.97
R2 – $495.85
R3 (Range Resistance – Sell) – $496.72
R4 (Long Breakout) – $499.36
R5 (Breakout Target 1) – $502.44
R6 (Breakout Target 2) – $503.68
S1 – $493.21
S2 – $492.33
S3 (Range Support – Buy) – $491.46
S4 (Short Breakout) – $488.82
S5 (Breakout Target 1) – $485.74
S6 (Breakout Target 2) – $484.50
By using the traditional method of calculation, the weekly levels of importance for Chipotle Mexican Grill Inc (CMG) are presented as follows:
Central Pivot Point – $517.30
R1 – $530.41
R2 – $540.11
R3 – $553.22
R4 – $566.33
S1 – $507.60
S2 – $494.49
S3 – $484.79
S4 – $475.09
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
