An analyst raised Chipotle‘s (CMG) rating from “neutral” to “buy” after hinting that the restaurant has strong potential to make it into the breakfast arena.
Mark Kalinowski of Janney Capital Markets said in a client note that even though Chipotle currently has no plans to introduce breakfast items, he expects that the company may wind up introducing breakfast burritos in the future.
He said that Chipotle’s current testing of coffee in one of its Washington, D.C., shops may be a precursor to the chain testing breakfast goods somewhere down the line.
The analyst thinks that both coffee and breakfast could potentially go nationwide in the future, but has no indication as to the timing of such possible rollouts.
Yesterday, CMG’s shares ended the day at $435.87 — the highest it’s seen in more than a year and a half.