Chipotle Stock (NYSE:CMG)
Chipotle stock (NYSE:CMG) was up 7.19% in premarket trading on Wednesday, adding to its post-earnings rise. The stock of restaurants has been the subject of a slew of optimistic analyst reports.
Oppenheimer raised their price target on Chipotle stock from $1940 to $2050, giving it an Outperform rating. According to analyst Brian Bittner, the company has pinpointed improvements in throughput and simpler comparisons as drivers for increasing traffic growth as the year progresses. It was also brought out that the “under-appreciated” acceleration in unit growth to 8% to 10% was made possible by a superlative balance sheet ($1B+ net cash).
According to Sara Senator, an analyst at Bank of America, the restaurant chain’s topline levers include customer loyalty, throughput, menu innovation, and value. The company believes Q1 significantly eased worries regarding CMG’s long-term capacity to maintain comparable sales. BofA’s long-held belief that last year’s pricing hikes did not irreparably harm the brand is supported by the traffic growth in the mid-single digits. “We see the continued growth of loyalty program members (+20% in 1Q23) as a way to drive more traffic and spending, as well as a good way to offer value if the macro environment worsens,” said Senatore. BofA has a Buy rating and a $2,200 price target on CMG.
BTIG increased its price target from $1,825 to $2,175. We think investors should take notice of the step shift in restaurant margins, which we feel is still in the early stages, even as we are pleased by the traffic increase and improving trend among lower-income customers,” observed analyst Peter Saleh.
Chipotle’s stock price target was increased by TD Cowen, which cited the company’s solid Q1 and Q2 QTD results in justifying the increase to $2,200. The data gave me more confidence that the firm can achieve restaurant-level margins of 27%,” said analyst Andrew Charles.
Chipotle was maintained at a Neutral rating by JPMorgan. According to analyst John Ivankoe, sustaining stock trading around the firm’s aim requires massive worldwide growth or the creation of another major brand.
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Author Shariq Khan 
