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Shares are currently trading hands at a price-to-earnings multiple of 64, an incredibly steep valuation to pay. But even though the company's underlying fundamentals remain strong, and the argument could be made that Chipotle is performing as well as it's ever been, the stock looks expensive today. Hold onto this top restaurant stockĪs you can see, Chipotle is still thriving even in a difficult macroeconomic environment. Ultimately, this could mean a higher stock price as well. Compared to the current market price of 1 744.74 USD, Chipotle Mexican Grill. More than doubling the store footprint (which doesn't even include penetration in Europe), coupled with rising annual unit sales volumes, means that Chipotle's total revenue and earnings could soar in the decade ahead. The intrinsic value of one CMG stock under the Base Case scenario is 947.15 USD. The average price target is 1,800.71 with a high forecast. and Canada," Niccol said on the call with investors. Based on 24 Wall Street analysts offering 12 month price targets for Chipotle in the last 3 months. "I'm certain that over time, we have the ability to grow our average unit volumes and achieve at least 7,000 restaurants across the U.S. As of June 30, the business counted 3,052 total locations. But still, posting gains in this macro environment would be a strong showing for Chipotle.ĭespite the near-term headwinds from soaring inflation and still-struggling supply chains - issues that many other companies are also facing - Chipotle's long-term outlook remains robust. The leadership team did point to decelerating foot traffic late in the second quarter that will carry over into the current period. Looking ahead, management forecast that the current quarter should see comps growth in the mid-to-high single digits on a year-over-year basis, a considerable slowdown from prior quarters. These retail outfits generate better sales, margins, and returns than stores without one, and they help propel the company's digital push.

In the quarter, Chipotle opened 42 new restaurants, of which 32 were built with a Chipotlane, the drive-thru option. Not only does the loyalty program significantly raise accessibility and convenience for customers, but these digital transactions, specifically order-ahead ones, produce the highest margins for the company.

The result was a restaurant-level operating margin of 25.2%, an improvement from 24.5% in Q2 2021.Ĭhipotle's budding digital ecosystem, which now has over 29 million rewards members, has been a major success. The companys average rating score is 2.81, and is based on 26 buy ratings, 6 hold ratings, and. But Chipotle was able to offset greater expenses with menu price increases, with another price hike of 4% planned in August. Chipotle Mexican Grill has received a consensus rating of Buy. Its restaurants primarily offer burritos, tacos, burrito. Facing higher input costs for things like avocados, packaging, dairy products, beef, and chicken, as well as labor, presented a challenge for the business. develops and operates fast-casual, fresh Mexican food restaurants in the United States, Canada, and England.