Chipotle Mexican Grill Inc CMG shares are trading higher Wednesday after the company reported better-than-expected earnings results.
Chipotle said second-quarter revenue increased 17% year-over-year to $2.21 billion, which missed the estimate of $2.24 billion, according to data from Benzinga Pro. The fast-casual restaurant chain company reported quarterly earnings of $9.30 per share, which beat the estimate of $9.05 per share.
Comparable restaurant sales jumped 10.1% in the second quarter. In-restaurant sales increased 35.9%, while digital sales represented 39% of food and beverage revenue.
Restaurant level operating margin was 25.2%, which was up from 24.5% year-over-year, benefitting from menu price increases. Chipotle said it opened 42 new restaurants in the quarter, with 32 locations featuring a "Chipotlane."
"Our pricing power and value proposition remain strong as our culinary and food with integrity commitment continues to be a key point of differentiation," said Brian Niccol, chairman, and CEO of Chipotle.
Chipotle said it expects third-quarter comparable restaurant sales growth to be in the mid to high-single digits. The company anticipates opening between 235 and 250 new locations in 2022.
- Keybanc maintained Chipotle with an Overweight rating and lowered the price target from $1900 to $1750.
- Cowen & Co maintained Chipotle with an Outperform rating and lowered the price target from $1830 to $1600.
- BMO Capital maintained Chipotle with a Market Perform rating and lowered the price target from $1700 to $1600.
- Citigroup maintained Chipotle with a Buy rating and raised the price target from $1742 to $1969.
- Morgan Stanley maintained Chipotle with an Overweight rating and raised the price target from $1768 to $1808.
CMG Price Action: Chipotle has a 52-week high of $1,749.07 and a 52-week low of $1,196.28.
The stock was up 8.1% at $1,423 at time of publication.
Photo: courtesy of Chipotle.
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