Chipotle Mexican Grill (NYSE:CMG) traded 20% higher on Thursday morning, after reporting earnings that beat Wall Street estimates. The company reported earnings per share of $2.13 and total revenue of $1.15 billion, compared to analyst expectations of $1.57 and $1.15 billion. Multiple analysts upgraded the estimates after the earnings call.
Our view is that CMG overcame adversity and appears to have solved its previous problems. However, it is now trading at resistance, and it is certainly possible that the stock could pull back a bit after this big one day run. We upgraded our target, to reach $440 later this year. Look for a pullback in late June as its minor and intermediate cycles are winding down.
Chipotle Mexican Grill (CMG) Stock Chart with Weekly Bars