Why Chipotle's Stock Is Trading Higher Today

Chipotle Mexican Grill Inc CMG is trading significantly higher Wednesday after the company announced better-than-expected financial results. 

Chipotle reported second-quarter earnings of $7.46 per share, which beat the estimate of $6.49 per share. The company reported quarterly revenue of $1.89 billion, which beat the estimate of $1.88 billion. Chipotle also authorized a $200 million stock buyback.

"We remain confident in our key growth strategies and believe they will help us achieve our next goal of $3 million average unit volumes with industry leading returns on invested capital that improve as we continue to add Chipotlanes," said Brian Niccol, chairman and CEO of Chipotle.

Analyst Assessment: Multiple analyst firms increased their price targets on Chipotle following its earnings report.

• Keybanc analyst Eric Gonzalez maintained Chipotle with an Overweight rating and raised the price target from $1800 to $1850.
• Stephens & Co. analyst James Rutherford maintained Chipotle with an Overweight rating and raised the price target from $1700 to $1850.
• Cowen & Co. analyst Andrew Charles maintained Chipotle with an Outperform rating and raised the price target from $1850 to $2080.
• Morgan Stanley analyst John Glass maintained Chipotle with an Equal-Weight rating and raised the price target from $1602 to $1646.
• Barclays analyst Jeffrey Bernstein maintained Chipotle with an Equal-Weight rating and raised the price target from $1530 to $1600.
• Credit Suisse analyst Lauren Silberman maintained Chipotle with an Outperform rating and raised the price target from $1950 to $2075.
• BMO Capital analyst Andrew Strelzik maintained Chipotle with a Market Perform rating and raised the price target from $1460 to $1750.
• UBS analyst Dennis Geiger maintained Chipotle with a Buy rating and raised the price target from $1700 to $1850.

Price Action: Chipotle is making a new 52-week high in trading today.

At last check Wednesday, the stock was up 9.60% at $1,725.43.