Why Chipotle Mexican Grill Stock Soared 21% in April
Shares of the restaurant chain Chipotle Mexican Grill (NYSE: CMG) jumped 21% in April, according to data provided by S&P Global Market Intelligence. The company reported another quarter of excellent earnings and reaffirmed a strong outlook and growth runway.
Chipotle seems almost completely resistant to economic impact. Although that's not exactly true, and it has felt some pressure from changing trends since the pandemic started, profitability has been robust, increasing year over year every quarter since the beginning of 2022.
Chipotle's business is targeted to a resilient niche of lower-priced but upscale fare, making it accessible to a more affluent base regardless of the economy, while being an affordable luxury for a mass market. As inflation hit and pressured margins, it has been able to raise prices without curbing demand. In the 2023 first quarter, operating margin increased to 15.5% from 9.4% last year.
Source Fool.com
Chipotle Mexican Grill Inc. Stock
The stock is one of the favorites of our community with 70 Buy predictions and 1 Sell predictions.
With a target price of 2478 € there is potential for a 5278.19% increase which would mean more than doubling the current price of 46.08 € for Chipotle Mexican Grill Inc..
