Analysts Just Turned Bullish on These 5 Stocks

3. Chipotle Mexican Grill, Inc. (NYSE:CMG)

Number of Hedge Fund Holders: 38

OTR Global improved its ratings for Chipotle Mexican Grill, Inc. (NYSE:CMG) from “Mixed” to “Positive” on Monday, June 27, 2022. The research firm referred to marginal improvement in the second-quarter trends over the comparable period of 2021.

Chipotle Mexican Grill, Inc. (NYSE:CMG) surpassed profit and sales expectations for the first quarter of 2022. The fast-casual restaurant operator reported adjusted earnings of $5.70 per share, topping estimates of $5.64 per share. The quarterly revenue of $2.02 billion also exceeded the consensus of $2.01 billion.

Separately, investment management firm Ensemble Capital talked about Chipotle Mexican Grill, Inc. (NYSE:CMG) in its first-quarter 2022 investor letter. The firm said:

“Chipotle (6.0% weight in the Fund): In a recent blog post called GREAT COMPANIES ARE FORGED DURING CRISIS we discussed why companies with economic moats, relevant products and services, and those that create stakeholder value are more resilient in the face of crisis than the average company. Less advantaged competitors, in turn, struggle, which creates opportunities for great companies to get even better.

We think Chipotle navigated the COVID environment better than any major quick-serve restaurant and has consequently gone from strength to strength. Indeed, from March 1, 2020 to March 31, 2022, Chipotle shares gained 106% versus the S&P 500 Restaurants Index’s 28% return, including dividends.

To be sure, going into 2020, Chipotle had some recent experience in managing through a crisis. Its self-inflicted foodborne illness crisis that occurred in 2015 and 2016 threatened to permanently impair Chipotle’s brand value and damage customer trust. While the company made some changes at the top, bringing in Brian Niccol as CEO, and reorganized its food preparation processes, it did not abandon its mission of providing customers with freshly-prepared, sustainably-sourced food. Even at the nadir of its crisis, the average revenue of a Chipotle restaurant remained in line with the average fast casual restaurant in the US.”