By Christiana Sciaudone
Investing.com -- Chipotle (NYSE:CMG) rallied 2.2% because who doesn't love a good burrito.
Shares got a boost as Raymond James upgraded the taco maker to a buy-equivalent from neutral with a price target of $1,800 and an eye on strong quarterly results to come.
Meanwhile, Chipotle Chief Financial Officer Jack Hartung told CNBC on Friday after the close that digital sales are staying strong even as dining rooms fill back up. And last week, the company got price target bumps from Deutsche Bank (DE:DBKGn) and Truist Securities.
Chipotle's had a banner year, more than doubling since its pandemic-driven dip in March 2020 amid strong profit and sales. Chipotle's digital sales jumped 174% in 2020 versus the previous year. It's trading close to a record, and is up some 10% in 2021.
"We now see significant upside to 1Q21 expectations," Raymond James said, according to StreetInsider. "Chipotle is also among the highest quality growth stories in our universe supported by several tangible comp drivers (menu innovation, leveraging loyalty), accelerating unit growth (7-8% in '22 bolstered by Chipotlane rollout still in very early stages), and an ironclad financial position (strong FCF and debt-free B/S)."
Hartung said some 80% of digital sales are hanging on strong, and dining rooms are regaining about 60% of pre-pandemic traffic
"We’re very optimistic about where we go from here,” Hartung said.
Chipotle has added quesadillas to its online menu, and offers debt-free college degrees for employees.
In other positive news for the guacamole purveyor, last week Piper Sandler found it continues to be the third most preferred restaurant brand among upper income teens, according to StreetInsider.