S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
South Korean doctors hold massive anti-government rally over medical school recruitment plan
Critical asset just had biggest fall on record (Ad)
Nobel laureate Muhammad Yunus is granted bail in a Bangladesh graft case
The former chairman of the state-owned Bank of Beijing is being investigated for alleged corruption
Critical asset just had biggest fall on record (Ad)
Trader Joe's chicken soup dumplings recalled for possibly containing permanent marker plastic
Arkhouse and Brigade up Macy's takeover offer to $6.6 billion following rejection of previous deal
Critical asset just had biggest fall on record (Ad)
OPEC+ production cuts deepen with extensions from Saudi Arabia, Russia and other oil giants
Stock market today: Japan's Nikkei tops 40,000, as investors await China political meeting
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
South Korean doctors hold massive anti-government rally over medical school recruitment plan
Critical asset just had biggest fall on record (Ad)
Nobel laureate Muhammad Yunus is granted bail in a Bangladesh graft case
The former chairman of the state-owned Bank of Beijing is being investigated for alleged corruption
Critical asset just had biggest fall on record (Ad)
Trader Joe's chicken soup dumplings recalled for possibly containing permanent marker plastic
Arkhouse and Brigade up Macy's takeover offer to $6.6 billion following rejection of previous deal
Critical asset just had biggest fall on record (Ad)
OPEC+ production cuts deepen with extensions from Saudi Arabia, Russia and other oil giants
Stock market today: Japan's Nikkei tops 40,000, as investors await China political meeting
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
South Korean doctors hold massive anti-government rally over medical school recruitment plan
Critical asset just had biggest fall on record (Ad)
Nobel laureate Muhammad Yunus is granted bail in a Bangladesh graft case
The former chairman of the state-owned Bank of Beijing is being investigated for alleged corruption
Critical asset just had biggest fall on record (Ad)
Trader Joe's chicken soup dumplings recalled for possibly containing permanent marker plastic
Arkhouse and Brigade up Macy's takeover offer to $6.6 billion following rejection of previous deal
Critical asset just had biggest fall on record (Ad)
OPEC+ production cuts deepen with extensions from Saudi Arabia, Russia and other oil giants
Stock market today: Japan's Nikkei tops 40,000, as investors await China political meeting
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
South Korean doctors hold massive anti-government rally over medical school recruitment plan
Critical asset just had biggest fall on record (Ad)
Nobel laureate Muhammad Yunus is granted bail in a Bangladesh graft case
The former chairman of the state-owned Bank of Beijing is being investigated for alleged corruption
Critical asset just had biggest fall on record (Ad)
Trader Joe's chicken soup dumplings recalled for possibly containing permanent marker plastic
Arkhouse and Brigade up Macy's takeover offer to $6.6 billion following rejection of previous deal
Critical asset just had biggest fall on record (Ad)
OPEC+ production cuts deepen with extensions from Saudi Arabia, Russia and other oil giants
Stock market today: Japan's Nikkei tops 40,000, as investors await China political meeting

2 Recession-Resistant Restaurant Stocks About To Hit New Highs

Chipotle Stock price forecast

Key Points

  • Recession is looming, but these restaurant stocks continue to grow and take market share. 
  • Chipotle Mexican Grill owes its success to CEO Brian Niccol. 
  • Darden Restaurants is leveraging a growth strategy and pays a nice dividend. 
  • 5 stocks we like better than Chipotle Mexican Grill

The restaurant industry has rebounded for the last 2 years, driven by post-COVID reopening, consolidation, and expansion efforts. That has stocks like Chipotle Mexican Grill NYSE: CMG and Darden Restaurants NYSE: DRI trending higher and on the verge of setting new highs.

While results underpin the action, the analysts drive the market and have both stocks on Marketbeat’s Most Upgraded Stocks list. With this trend in place and solid support from the institutions, new highs are all but assured. 

Chipotle: The Pure Growth Play 

Chipotle Mexican Grill is a play on growth that centers on CEO Brian Niccol. The company has made a complete about-face since he took the helm and is growing at an accelerating pace in 2023. Part of the strategy focuses on quality, the core of Chipotle’s offerings from the start. However, that has been amplified by a tech-centric attitude leaning heavily into eCommerce and customer relationships, driving repeat business. Another strategy pillar is the Chipotlane drive-thrus and digital kitchens that can only be accessed with the Internet. The evidence of that success can be seen in the push toward opening new Chipotlanes and remodeling old locations to have one. 

The analysts are upping their EPS and stock price targets with only a month until the following earnings reports. The 4 revisions issued in June include price target increases with a consensus above $2300. That’s $240 or 12% above the consensus target, trending higher than last month, last quarter, and last year. Assuming the following report is as good as expected, this market could quickly move into the high end of its expected range and higher. 

The chart confirms this. The chart shows a solid Bullish Flag Pattern with a $300 to $600 flag pole, depending on where you measure from. That puts the price action firmly at the $2300 level with a chance of hitting the $2600 mark, given a solid EPS report. As for the institutions, thy own nearly 92% of the stock, and their activity is ramping higher. The balance of activity is closely matched, suggesting rotation from profit-takers to new money but bullish on balance in Q1 and Q2 2023. 

Chipotle Stock Chart

Darden Restaurants: Price Decline Attracts New Money

Darden Restaurants did not catalyze a rally with its Q4 results and outlook for 2023. The news was tepid despite calling for growth and operational improvement, resulting in a mid-single-digit drop in share value. That move was met by buyers and analysts raising their price targets for the stock. The company received 6 revisions that Marketbeat’s tools picked up, including 5 upward and 1 down. The takeaway from the data is that the single downward revision is $17 above the consensus, and the average of the 6 is close to the same. That’s more than 10% above the broad consensus trending higher. It is also deep into the new all-time high territory and has the market on the verge of a breakout. 

Shares of DRI stock were trending higher before 2020 and have continued that trend since. The company’s growth trajectory drives the uptrend, and operational quality includes a healthy dividend. The stock yields more than 3.25% and is accompanied by share repurchases. The recent purchase of Ruth’s Chris Steak House owner Ruth’s Hospitality Group is expected to drive top and bottom-line growth and margin improvement. 

The chart is favorable to higher prices. The market recently hit a new all-time high and has decreased slightly since. The post-release action includes a drop in prices that produced a rebound. The weekly candle is red, but the daily action shows a trend-following bounce that should result in another rally. 

Darden Stock price chart

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Should you invest $1,000 in Chipotle Mexican Grill right now?

Before you consider Chipotle Mexican Grill, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Chipotle Mexican Grill wasn't on the list.

While Chipotle Mexican Grill currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Darden Restaurants (DRI)
4.646 of 5 stars
$171.29+0.3%3.06%20.71Moderate Buy$174.83
Chipotle Mexican Grill (CMG)
4.515 of 5 stars
$2,688.78+0.0%N/A60.63Moderate Buy$2,469.88
Compare These Stocks  Add These Stocks to My Watchlist 

Thomas Hughes

About Thomas Hughes

  • tmhughes.writeon@gmail.com

Contributing Author

Technical and Fundamental Analysis

Experience

Thomas Hughes has been a contributing writer for MarketBeat since 2019.

Areas of Expertise

Technical analysis, the S&P 500; retail, consumer, consumer staples, dividends, high-yield, small caps, technology, economic data, oil, cryptocurrencies

Education

Associate of Arts in Culinary Technology

Past Experience

Market watcher, trader and investor for numerous websites. Founded Passive Market Intelligence LLC to provide market research insights. 


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