Shares of Chipotle Mexican Grill (CMG) hit an all-time high today, climbing 7.35% to $3,142 after reporting first-quarter earnings exceeding analysts' expectations. Revenue grew by 14%, exceeding estimates, and earnings per share surpassed predictions at $13.37 instead of the expected $11.68.
Despite six price increases since 2021, Chipotle maintains a loyal customer base with a 7% rise in same-store sales. Factors contributing to this growth include improved service speed and the return of popular limited-time offerings like Chicken al Pastor.
Following the earnings report, 10 analysts raised their price targets for Chipotle. This positive sentiment contrasts with the struggles faced by other restaurant chains, including closures by TGI Fridays and bankruptcy filings by Tijuana Flats.
Chipotle anticipates continued growth in same-store sales at a mid-to-high single-digit rate. Additionally, a 50-for-1 stock split approved in March sets the stage for one of the NYSE's largest splits, pending shareholder approval in June.
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