Chipotle’s stock has recently seen a very large increase.
The price of the stock has gone up so much recently that many people are wondering how this can be.
With Chipotle’s stock increasing, the overall quality of the product gets questioned.
People always want to know the perfect time to get in on a stock, so if you are thinking it could be now, we have all the answers you might need.
Here are ten reasons Chipotle’s stock is so high and what you should do about it.
Why Is Chipotle’s Stock So High? (10 Reasons)
1. Increased Online Sales
The very first reason Chipotle’s stock is so high is that its sales are increasing online.
If you know anything about the internet and the way it can drive business, then you likely understand how important digital sales are.
Companies are looking to increase their digital sales each and every quarter.
Through online marketing, promotion, and ease of use for a customer, sales can increase and improve quite rapidly.
The digital sales for Chipotle have grown tremendously since it has opened, and just recently, they took another jump of about 10% before this most recent increase in stock prices.
Almost half of the sales that the company does are digital sales, and it is starting to really shine above its competitors in the same market.
There are several reasons Chipotle stands out from the competition, and we will get into those a bit more as we move through our top ten reasons.
2. Overall Increase In Popularity
Chipotle continues to get more and more popular.
The thing that brings people back to Chipotle over and over again is the consistency.
It really doesn’t matter which Chipotle location you go to, the food quality and taste will be identical.
This is why the company has grown so well through the years.
People have come to understand what the product is, and they know they are going to get a quality meal when they stop in and order from Chipotle.
Overall, people care more about consistency in fast food than they even do about overall taste.
However, the taste profile for Chipotle is quite diverse while still using very few ingredients.
This can really help to ensure that a large majority of customers are satisfied.
With small restaurants going out of business and people being busier than ever, a quick meal from Chipotle could be a major reason the chain continues to grow in popularity.
Any time a company is growing and expanding, you can expect to see its stock prices continue to go up.
If you watch trends like this, you can make some good investments into your stock portfolio.
3. Restaurants Handcuffed Due To Covid
Chipotle was one of those restaurants that actually saw an increase in sales with the pandemic.
So many small restaurants had to shut down or limit their capacity.
These came as a result of covid restrictions but also because of staffing issues.
Chipotle could make some exceptions because of the way its food is served.
Although you can eat inside a Chipotle location, most people will choose to take their food to go.
This is not quite the same for a fine Italian restaurant or a high-end Japanese steakhouse.
Most people expect these types of eating experiences to be in-house.
When those eating experiences could not be completed inside the restaurant, people took their business elsewhere.
Chipotle made the perfect medium option between fast food joints and restaurants that could no longer accommodate the people.
The reason Chipotle stands out as being a bit better than standard fast food is the quality of the ingredients and the overall health of the products it serves.
If you want to keep things healthy at Chipotle, it is possible.
Therefore, with restaurants shutting down and indoor dining being limited, those who were in search of a quick and tasty meal simply would stop by Chipotle and grab something to go.
This was reflected quite clearly in their stock prices earlier this year.
4. Starting To Introduce More Dining Room Sales
Now that some people are vaccinated for Covid, they are more comfortable with starting to go out and eat inside a restaurant.
For Chipotle, the decrease in dining room sales was a significant one, but it was made up for by digital sales.
However, now that people are going back out again, the digital sales are continuing to rise, but the dining room sales are rising as well.
This is why Chipotle’s numbers are looking so good and getting more and more attention from investors.
Instead of simply increasing in one area, they are increasing in all areas.
The dining room and the digital sales are going up, and the company has shareholders and those who understand the value of a stock starting to pay close attention.
The great thing about Chipotle is that it has a ton of flexibility in the way it can serve and prepare its product.
Customers feel safe about the way the food is handled, and as they head back out into the world to eat out, Chipotle’s numbers are only going to increase.
Overall, we don’t expect to see a downturn at any time, regardless of what continues to happen with the Covid pandemic.
5. Only A Certain Number Of Shares
When some people talk about the price of Chipotle stock, they will tell you that it is actually not all that expensive.
This is because the price of the stock is actually a relative thing.
Think of stock in the same way you think of fine art.
When an artist only makes one original painting, that painting sells for a large sum of money.
However, the reproductions of those paintings only sell for a small amount because they are much easier to get.
Chipotle has a small market share.
They don’t have nearly as many stocks as other companies do, and that ends up impacting the overall pricing that you pay for the stock.
When companies have quite a few, the pricing may be lower, and then some companies have a limited number of stocks, and you can expect the pricing to be very high.
Some Chipotle investors will tell you that they don’t think the pricing of the Chipotle stock is all that high; it is simply that there are not that many of the Chipotle shares on the market for investors to buy.
As an owner of Chipotle stocks, you have a much greater percentage of the company.
6. Beating Goals
All companies will set goals and projections.
These goals are not just for the individual store managers and employees, but they are also used for the shareholders and the business analysts.
The object of the goal is to meet or exceed it.
If you happen to have a very good year, chances are you are going to beat your goal.
The thing about Chipotle is that it continues to beat its goals year after year.
From the time the company has started, it has been very set on meeting its goals and ensuring that it continues to get better each and every quarter.
There is no question you can watch the growth and the expansion plan that Chipotle has been on and see that it is working quite well for the company.
Many years ago, you would probably have had no idea how this company would take off and prosper.
If we could only rewind the clocks and invest in this stock, things would likely be quite a bit different for all of us.
Imagine purchasing Chipotle stock when it was $22 per share.
Today, Chipotle stock is close to $2,000 per share.
This means that a $10,000 investment when the company first went public would now be worth over three-quarters of a million dollars.
Certainly, this would be a life-changing gain from just one company.
However, this is the interest that keeps many people investing in the stock market and continuing to learn about what will make it and what won’t.
The more time you spend learning and growing your knowledge, the better chance you have of making it big on one of these stocks.
As always, it is also smart to talk to investors about these stocks and their results so that you can make informed and knowledgeable decisions.
7. Profitable Business Model
Another reason that Chipotle stock is so high is that its business model is profitable.
Those who invest in a stock or product want to know that the business model is going to continue to be successful for years to come.
The business model for Chipotle allows for the same ingredients to be used in a variety of different ways.
This limits the product of different foods and allows for consistency in the product.
People know that they have several options from Chipotle, and they can vary their meals based on these options.
Everyone is comfortable with this, and the ability to customize your salad, bowl, or burrito to meet your needs is something that sets Chipotle apart.
Although you can ask for a McDonald’s hamburger without the ketchup, the customization options are not nearly the same as they are with Chipotle.
Essentially, the Chipotle business model was built to last, and it has proven year after year that it is going to continue to grow and expand.
The business model that is in place is a significant reason stock prices continue to rise.
If Chipotle decides to change up the way it does business, chances are the stock will get a bit shaky for a while until we see the way the changes are going to impact the company.
8. Trusted Product
The Chipotle product is a trusted product, and because of that, the stock becomes a trusted product.
Even as people start to eat healthier with more care and attention to animals and their lives, Chipotle is at the forefront of all these issues.
The company offers healthier options than other fast food restaurants, and it is open about its ingredients, the quality, and where they are sourced from.
In addition, you can customize a Chipotle product to meet your needs specifically.
You can look at the products and decide that something appeals to you one day and not another, and the ingredients are all options that you can trust.
People just don’t have the same trust for a piece of fish from a Long John Silver’s.
The trust for Chipotle was not something that was given to it, but it was earned through the years.
The stock is very similar.
Those who have invested in the Chipotle stock have seen some significant gains.
This has made the stock that much more of a trusted product.
People who purchased Chipotle stock have seen ups and downs through the years, but overall, they have been very happy with the overall performance of the brand.
Therefore, the trusted product is continuing to raise the price that people will pay for the stock.
9. Overall Good Branding And Name
The Chipotle brand is very strong.
Chipotle stands behind its product, they are nice to their customers, and they put out one good meal after another.
In addition, the Chipotle brand tries to be fair to their employees so that they return and continue to want to work there.
The branding of the name and putting the entire company together as a whole have helped to increase the price of the stock.
Even the colors and the packaging from one Chipotle to the next will be consistent.
This is something that customers are looking for and something that they will enjoy.
If you ask customers what their complaints are about certain smaller restaurants, it is that the product is different each time.
This is because these smaller restaurants don’t have the time or the funds to spend on the branding and the quality of the name of their product.
Food can be very subjective.
One person thinks a meal is excellent and another thinks it is the worst they have ever had.
However, Chipotle stands out as being a good product overall, with great branding and a strong name.
This has continued to increase the price of its stock for many years.
The question remains whether or not this will be enough to continue to increase the stock for many more years.
As many investors would like to know, how high can Chipotle go?
Only time will tell.
10. Provides A Good Stock For Buyers
Last but certainly not least the Chipotle stock has proven to be an excellent option for those who invest in the stock market.
If you are new to the stock market, you may not quite understand how to follow it and how you will start to watch certain companies.
Some of the companies in your portfolio will become your favorites simply because they continue to perform year after year.
Chipotle is one of these stocks.
Those who invest in this company feel strongly about the future of the company and where the stock prices are headed.
If you are a fan of a product, it makes sense to look into the company and see if it could be worth buying their stock.
The truth about many of the Chipotle stock owners is that they knew this product was good because they enjoyed it themselves.
This has created a loyal group of shareholders who genuinely enjoy being a part of all that Chipotle has to offer.
Some stocks won’t ever do anything for you, or they will help you lose significant amounts of money, but Chipotle is one that people enjoy owning and following.
Although the price is relatively high to get in now, it will still be interesting to see how many more people want a piece of what Chipotle has to offer.
Seeing the progression of companies like Chipotle is almost remarkable.
If we all had a crystal ball that could have told us which companies would make it through the pandemic and thrive and which would crash, it would take all the fun out of this world.
Getting to learn about how a business puts together its product and takes it to the next level is the fun of being involved in the stock market.
If Chipotle is a bit too expensive for you at this point, it makes sense to go find something similar to Chipotle that is just starting out and see if you can make yourself some money.