for the restaurant, as the burrito peddler joins the likes of the world's largest fast-food chain in relishing profits after passing inflationary costs onto consumers.Chipotle brought in $2.4 billion in sales and $292 million in profit over the first three months of 2023, both record numbers for the firm.
Its stock accordingly jumped as much as 15% in early trading to $2,046, surpassing a September 2021 all-time high of about $1,960 and tacking on some $7 billion in market value.In its Tuesday afternoon earnings release, Chipotle listed one main reason behind its ability to up its restaurant operating margins by nearly 25% over the past year that’s near and dear to the chain aficionados' hearts: Avocados.
The average price of a Hass avocado dwindled more than 50% from $2.49 in October 2022 to $1.16 last week, according to U.S. Department of AgricultureIn a Wednesday note to clients, Bank of America analysts led by Sara Senatore upped their price target for Chipotle to $2,200, implying 8% upside even after the stock’s Wednesday rally.McDonald’s, the world’s biggest restaurant chain by market capitalization, reported similarly bumper earnings in its Tuesday earnings report, posting $5.
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