Chipotle Mexican Grill Inc CMG:NYSE

Last Price$1,686.88NYSE Previous Close - Last Trade as of 5:00PM ET 11/26/21

Today's Change-21.05(1.23%)
Bid (Size)$1,680.02 (1)
Ask (Size)$1,684.99 (1)
Day Low / High$1,671.12 - 1,703.10
Volume141.7 K

Chipotle Mexican Grill to Continue Significant Long-Term Earnings Boost on Unit Growth, Margin Expansion, RBC Says

11:53AM ET 10/13/2021 MT Newswires
Chipotle Mexican Grill (CMG) will likely continue to experience significant long-term earnings growth on the back of continued unit growth and margin expansion, RBC Capital Markets said Wednesday.

In a note to clients, RBC analysts said margins will be in greater focus when the company reports its Q3 results on Oct. 21.

"On margins, we think guidance likely captured most of the pressure points for Q3 margins, and investors will also be focused on Q4 margin guidance, as well as any further commentary regarding pricing," the analysts said.

RBC expects Q3 EPS of $6.53, versus a consensus estimate of $6.32. A key driver of comparable growth is the pricing, consisting of menu pricing and incremental pricing for delivery orders.

"While we acknowledge that food and labor cost concerns may drive near-term volatility in the stock, [Chipotle Mexican] remains our favorite name among the company-owned restaurant models," the analysts said.

RBC has an outperform rating on the stock, with a price target of $2,100.