Chipotle's Chart and Its Plan to Win

It may be well over ten years since McDonald's spun off Chipotle Mexican Grill, but CMG is now trying to stage a turnaround not unlike what MCD did in the wake of the "Super Size Me" controversy around 2004. 

Back then, MCD was taking shots all the way around, be it from markets, politicians, business competitors, and general social stigma. But with former CEO Jim Skinner and his savvy "Plan to Win," McDonald's staged a stunning turnaround with the stock appreciating from a low of around $12 to recent highs nearly tagging $132. 

Given CMG's health scandals coupled with increased competition, the MCD spinoff may be ripe to follow in its former parent company's footsteps for a surprise turnaround. 

On the daily chart, below, note CMG bull-flagging above $435 resistance and responding nicely today to a multi-session pullback. Earnings are scheduled for April 25th. The reaction then should set the tone into the summer months as to whether Chipotle truly is prepared for a stunning comeback like MCD. 

More on the market today in my usual Midday Video for Members.