"Chipotle remains our top recovery investment recommendation and we have a high degree of conviction that current strategic initiatives can continue to generate improving fundamentals," writes the PJ analysts team.
"As the company progresses through its recovery process we believe the conversation (from a stock perspective) eventually shifts to one that focuses on identifying incremental strategies to maximize shareholder value."
Piper also teases the potential of Chipotle transforming its international store base into a growing franchise business, a scenario that it sees unlocking incremental profitability of $2 to $5 per share in earnings power.
Shares of Chipotle are up 0.55% to $642.50.
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