This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Sozzi: 3 Mysterious Things Now Happening at Chipotle

Stocks in this article: CMG MCD YUM SBUX AAPL

NEW YORK (TheStreet) -- Guess what? Chipotle's (CMG) stock has surged 13% in the past month, completely under the radar of those not named me. I think the stock's meaty gain is a byproduct of a continuation of very strong restaurant traffic around the clock following a pre-summer menu price increase. Mr. Market appears to be positioning for a blowout second quarter from Chipotle, and it's hard to dispute that notion.

However, I have found three mysterious things now underway at Chipotle, two of which have short- and long-term stock price implications and the other is just a great conversation piece.

As the Starbucks (SBUX) cup art revolution explodes on Tumblr and Instagram (watch more on that amazingness here) due to efforts from creative patrons, Chipotle has joined the movement of sprucing up its packaging. In a program called "Cultivate Things," Chipotle paper bags and cups have positive quotes and short stories on them to entertain customers in and out of the restaurant. What perfect marketing. Chipotle surely has to know positive quotes from one its bags will be photographed and shared on social media, subliminally tempting those scrolling on an Apple (AAPL) device headed home hungry from work.

Say hello to the life-changing new Chipotle bag and cup.

In some markets, Chipotle is currently running an aggressive buy-one-get-one-free burrito, burrito bowl, or salad promotion until July 15. Alongside this component is a promotion for free chips and guacamole with a purchase. Remember, all of this lures in new and previous customers just as the company has raised prices. Oh, you are so sly Chipotle!

Over a month left to snag this hot deal.

When a person imagines Chipotle he probably thinks of a free-standing location in a shopping center. That is changing, with Chipotle starting to venture into malls to shake up the tired food court scene dominated by McDonald's (MCD) and Yum Brands' (YUM) Taco Bell. A mall-based Chipotle recently opened in Dallas' North Park Center with a menu board that has a dedicated white section (so it sticks out) for Chipotle's new catering service (coming to New York).

Didn't catch any new secret items on the menu.  Sad face.

Before I go, did you read up on Chipotle's annual "Cultivate Festival" held over the past weekend. Give it a Google search. I have the impression the company could be imagining some new products.

-- By Brian Sozzi CEO of Belus Capital Advisors, analyst to TheStreet.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

At the time of publication, Sozzi had no positions in the stocks mentioned, although positions may change at any time.

Brian Sozzi is the CEO and Chief Equities Strategist of Belus Capital Advisors. He is responsible for developing and managing an equities portfolio of mid- and large-cap positions, in addition to leading the firm's digital content initiatives. He is also a personal finance columnist for Men's Health magazine.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs