Shares of Chipotle (CMG) rose in after-hours trading after the company reported earnings for its second quarter of Fiscal Year 2024. Earnings per share came in at $0.34, which beat analysts’ consensus estimate of $0.32 per share. Furthermore, sales increased by 18.3% year-over-year, with revenue hitting $2.97. This beat analysts’ expectations by $30 million.
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Looking forward, management now expects comparable restaurant sales growth for Fiscal Year 2024 to be in the mid to high-single-digit range. In addition, the firm plans to open up 285 to 315 new restaurants.
Investor Sentiment for CMG Stock
The sentiment among TipRanks investors is currently very positive. Out of the 747,696 portfolios tracked by TipRanks, 1% hold CMG stock. In addition, the average portfolio weighting allocated towards CMG among those who do have a position is almost 5%. This suggests that investors of the company are fairly confident about its future.
Amazingly, in the last 30 days, 30.4% of those holding the stock increased their positions. As a result, the stock’s sentiment is well above the sector average, as demonstrated in the following image:
Is CMG a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CMG stock based on 17 Buys, eight Holds, and zero Sells assigned in the past three months. After a 24% rally in its share price over the past year, the average CMG price target of $67.56 per share implies 30.48% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
