Chipotle Mexican Grill well positioned to support transaction and sales growth – UBS

Analysts at UBS reiterate a Buy rating and $2,250 price target on Chipotle Mexican Grill (NYSE:), noting that the company is “well positioned w/ drivers to support transaction and sales growth.”

In their latest note on the iconic fast-food chain, the analysts quote the results of a “recent UBS Evidence Lab QSR survey of ~2K consumers” conducted to assess “traffic drivers, sustainability of sales momentum, and top line resiliency.”

The analysts note that results paint a positive picture for the company suggesting “core competitive advantages & strategic priorities are resonating w/ customers, supporting increased visit intent over the next 12 months.”

As such, they believe “CMG is positioned for continued outperformance even in a difficult macro,” driven by the following trends:

• “Solid value perceptions.”
• “Still attractive price points.”
• “Other levers to support above avg resilience.”
• “Throughput improvement as the most significant driver of incremental traffic & sales growth.”

The UBS analysts continue to “see upside for shares given strong multiyr sss, accelerating unit development, and a ~25% 3-yr EPS CAGR,” as they reiterate a Buy rating and $2,250 price target.

CMG closed at $2,061.17 yesterday, and is up over 50% YTD.