Why Chipotle Mexican Grill Shares Are Sizzling Wednesday

Chipotle Mexican Grill Inc CMG shares are trading higher Wednesday after the company reported better-than-expected quarterly results. Several analysts raised price targets on the stock following the print.

What Happened: Chipotle said first-quarter revenue increased 17.2% year-over-year to $2.37 billion, which beat average analyst estimates of $2.34 billion, according to Benzinga Pro. The company reported quarterly earnings of $10.50 per share, which beat estimates of $8.92 per share. 

Comparable restaurant sales increased 10.9% year-over-year. In-restaurant sales were up 22.9% and digital sales represented 39.3% of total food and beverage revenue.

Chipotle said it opened 41 new restaurants in the quarter. The company expects to open between 255 and 285 restaurants in 2023. 

"We will continue to develop exceptional people and prepare exceptional food while treasuring each guest to further strengthen our foundation for sustained long-term growth," said Brian Niccol, chairman and CEO of Chipotle.

Chipotle expects both second-quarter and full-year 2023 revenue growth to be in the mid to high-single digit range. 

Analyst Assessment: 

• Keybanc analyst Eric Gonzalez raised the price target from $1,870 to $2,050.
• TD Cowen analyst Andrew Charles raised the price target from $2,050 to $2,200.
• Barclays analyst Jeffrey Bernstein raised the price target from $1,550 to $1,885.
• Credit Suisse analyst Lauren Silberman raised the price target from $2,050 to $2,200.
• Wells Fargo analyst Zachary Fadem raised the price target from $1,900 to $2,050.
• Morgan Stanley analyst John Glass raised the price target from $1,743 to $1,910.

See Also: Chipotle Gets Price Target Hikes By Analysts Following Better-Than-Expected Q1 Earnings

CMG Price Action: Chipotle shares were up 7.58% at $1,915 at time of publication, according to Benzinga Pro.

Photo: courtesy of Chipotle.