Chipotle Mexican Grill (NYSE:CMG) stock is up 8% today after the company beat analysts’ expectations.
Chipotle reported earnings per share of $5.58, higher than estimates for $5.25. Its revenue came in at $1.96 billion, which was in line with consensus estimates.
The company also reported fourth-quarter net income of $133.48 million, or $4.69 per share. This was down from $190.96 million, or $6.69 per share in 2020. Chipotle unsurprisingly attributed this to rising wages and higher prices — the company had to pay more for beef, avocados and freight in Q4.
So the question now is, should investors buy CMG stock after its earnings victory? Here are four analyst price predictions for Chipotle Mexican Grill in the coming months.
CMG Stock Price Predictions
- RBC Capital Markets has a “buy” rating on CMG stock and a $2,000 price target, which would be 37% higher than the company’s current share price of $1,460.
- BTIG also has a “buy” rating on Chipotle stock and a $1,975 price target, which is 35% higher than it is today.
- Stifel Nicolaus is also on the “buy” bandwagon with a $1,950 price target, implying 33% upside.
- Lastly, KeyBanc has a “buy” rating on CMG stock and a $1,850 price target, which would be 27% higher than where it currently trades.
What’s Next for Chipotle
Chipotle said it has raised menu prices by 6% so far in 2022, and the company’s CEO said it is fortunate that it can lift prices and customers will stay with the restaurant chain. Factoring in the 2022 increases, customers are now spending about 10% more year over year for their orders.
The pricing power of Chipotle is one of the things that sets the restaurant chain apart, say analysts who generally remain bullish on the stock. Currently, among 25 professional analysts who cover Chipotle Mexican Grill, the median price target on the stock is $1,937.50, which would be 23% higher than where the shares finished trading yesterday.
The consensus is clearly that CMG stock is a strong buy right now coming out of its latest earnings triumph.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.