Shares of Chipotle Mexican Grill, Inc. CMG ascended in premarket trading on Wednesday, following the company’s release of exceptional fourth-quarter results.
The results were especially remarkable during this exciting earnings season. Here are key takeaways from 9 analysts:
Stephens: Overcoming Adversity
Stephens analyst Joshua Long maintained an Overweight rating, while increasing the price target from $2,800 to $3,000. Long noted that Chipotle reported better-than-expected Q4 results across all major line items. Although sales were initially impacted by adverse weather conditions, the company remains well-positioned to offset the impact of rising labor costs through various strategic initiatives.
Truist Securities: Driving Industry Leading Traffic
Truist Securities analyst Jake Bartlett reiterated a Buy rating, while raising the price target from $2,700 to $2,920. Bartlett highlighted Chipotle’s industry-leading traffic and optimistic outlook for sustained growth in 2024, despite labor cost headwinds.
BMO Capital Markets: Exceeding Expectations
BMO Capital Markets analyst Andrew Strelzik reaffirmed a Market Perform rating, while lifting the price target from $2,100 to $2,400. Strelzik emphasized Chipotle’s earnings beat and the company’s strong growth prospects in a challenging environment.
Stifel: Textbook Traffic Growth
Stifel analyst Chris O’Cull maintained a Buy rating, while raising the price target from $2,560 to $2,700. O’Cull praised Chipotle’s strategic efforts to drive traffic, increase throughput, and enhance the value proposition, positioning the company for continued outperformance.
Baird: Impressive Transaction Momentum
Baird analyst David Tarantino reiterated an Outperform rating, while lifting the price target from $2,650 to $2,850. Tarantino highlighted Chipotle’s impressive transaction momentum and sales-driving initiatives, which provide visibility into the company’s fundamental outlook for 2024.
KeyBanc: Industry-Leading Transaction Growth
KeyBanc analyst Eric Gonzalez reaffirmed an Overweight rating and raised the price target from $2,250 to $2,750. Gonzalez focused on Chipotle’s industry-leading transaction growth and the company’s solid growth prospects.
Morgan Stanley: Clean Beat and Solid Performance
Morgan Stanley analyst Brian Harbour maintained an Equal-Weight rating and raised the price target from $2,284 to $2,500. Harbour emphasized Chipotle’s clean beat and solid performance, expressing confidence in the company’s stock.
BofA Securities: Overcoming Elevated Inflation
BofA Securities analyst Sara Senatore reiterated a Buy rating and raised the price target from $2,700 to $3,000. Senatore commended Chipotle for overcoming elevated inflation and achieving margin expansion commensurate with sales growth.
Wedbush: Positive Earnings and Cautious Outlook
Wedbush analyst Nick Setyan reaffirmed a Neutral rating and a price target of $2,400. Setyan acknowledged Chipotle’s positive earnings and cautiously noted the company’s same-store sales growth guidance.
At the time of publication on Wednesday, Chipotle’s stock had risen by 8.53% to $2,700.00.
Image: Shutterstock