Chipotle Mexican Grill, Inc. (NYSE:CMG) shares are moving higher on Wednesday after Truist Securities analyst Jake Bartlett maintained a Buy rating on Chipotle and raised the price target from $72 to $74.

What To Know: In his note, the analyst pointed out that Chipotle has begun raising prices at certain locations, a move he believes is being made from a position of strength.

Tthe Mexican restaurant chain has increased prices by about 2% on proteins at approximately 20% of United States locations. The analyst noted that Chipotle typically implements price increases over several weeks and therefore expects additional price hikes at other locations.

The analyst highlighted that a 50bps increase in traffic in November suggests the price hike was initiated from a strong position. Chipotle previously reported a 4% growth in traffic for September, up from 2.5% in July, a trend that continued into October.

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CMG Price Action: At the time of writing, Chipotle stock is trading 4.61% higher at $63.75, per data from Benzinga Pro.

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