Which Restaurant Stocks Are Gainers Post Q1? Analyst Picks BJ's Restaurants And Chipotle Mexican Grill

Wedbush analyst Nick Setyan favors BJ's Restaurants Inc BJRI and Chipotle Mexican Grill Inc CMG based on the first quarter checks.
The analyst had recently double upgraded BJRI to Outperform with a price target of $36.
The analyst's checks through Q1 point to same store sales growth at least in line with the consensus of 8.2%.
Positive callouts included higher pricing, improved staffing levels, and sustained levels of off-premise sales.
The analyst reiterated an Outperform rating on the shares of Chipotle Mexican Grill with a price target of $2,080.
The analyst thinks CMG is well positioned to regain its relative value advantage by holding menu pricing below peers in 2023, aiding in transaction growth through 2023.
With respect to margins, given the expectation of top line upside and some incremental favorability in inflation, particularly net food costs, the analyst believes upside to Q1 and 2023 upper limit margin estimates is possible.
The analyst reiterated an Outperform rating on the share of McDonald's Corp MCD and raised the price target from $300 to $315.
The analyst expects upside to MCD's Q1 expectations, led by strength in the U.S. along with sustained global comparable sales momentum.
While margin pressure is expected ahead of current consensus estimates, the analyst believes the combination of top line strength/upside and corporate cost reductions lowers risk to 2023 operating margin and EPS expectations.
The analyst reiterated an Outperform rating on the shares of Domino's Pizza Inc DPZ with a price target of $365.
The analyst remains below consensus for Q1 but is above consensus for the remainder of the year.

Market News and Data brought to you by Benzinga APIs

Comments

Analyst Calendar

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga