Investing.com – Chipotle stock (NYSE:CMG) inched up 0.3% Wednesday after Cowen reiterated its top-pick view on the company with a Street-high target of $2,250 per share, an upside of nearly 19% from the stock’s Tuesday closing price of $1894.82.
Analyst Andrew Charles said the burrito restaurant chain could surprise to the upside on same-store sales in the next three years.
Chipotle’s second-quarter revenue rose 39% to $1.9 billion and comparable sales rose 31%. Chipotle Chairman and CEO Brian Niccol guided for $3 million average unit volumes after the company returned to $2.5 million in the June quarter.
According to the analyst, Chipotle’s business is capable of producing 27% to 28% restaurant margins and raised the 2022 same-store sales estimates to 6.5% from the prior 5%, higher than the Street’s 6%.
Charles believes the higher prices the company introduced this year will carry into the first half of the next financial year.