Chipotle Mexican Grill soared more than 10% to a record high as analysts praised the burrito chain's second quarter results.
After the close of regular trading Tuesday, Chipotle (ticker: CMG) said it earned an adjusted $7.46 a share from revenue of $1.9 billion, beating Wall Street's forecasts for both the top and bottom lines. Sales at restaurants open at least a year grew more than 31%, also coming in ahead of expectations.
The stock was up 10.4% to a record $1,740 in midday trading, putting the shares on track for their biggest daily percentage gain since April 2020. The stock has jumped 25% year to date and is up more than 46% in the past 12 months.
Several analysts raised their targets for the stock price. Cowen & Co.'s Andrew Charles reiterated an Outperform rating and increased his call to $2,080 from $1,850. Charles said Chipotle. a top pick for him, "will demonstrate proficiency in growing comps 5% annually," in 2022 and beyond.
Credit Suisse's Lauren Silberman reiterated an Outperform rating and lifted her target to $2,075 from $1,950. "Chipotle continues to be one of our favorite near-term and long-term stocks as a rare compounding growth story positioned for double-digit top-line, margin expansion and unit growth acceleration over the years to come," she wrote in a research note.
RBC Capital Markets' Christopher Carril reiterated an Outperform rating and boosted his target to $1,825 from $1,800, saying he was pleased that the chain's momentum has continued into the third quarter, with a higher forecast for comparable-restaurant sales than Wall Street expected.
Stephens' James Rutherford took his target to $1,850 from $1,700. He too reiterated an Outperform call, writing that "Chipotle checked all the right boxes this quarter."
Stifel's Chis O'Cull kept the stock at Buy rating and raised his target to $1,850 from $1,750. He said that though the company is paying higher wages, he expects Chipotle to improve margins over time as sales volumes rise.
Truist Securities' Jake Bartlett reiterated a Buy rating and lifted his target to $1,800, from $1,750. Strong comparable-outlet sales are "supporting accelerating development despite wage pressure," he said.