5 Best Fast Food Stocks to Buy Now

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

Number of Hedge Fund Holders: 35

Chipotle Mexican Grill, Inc. (NYSE:CMG) is an American chain of fast-casual restaurants, specializing in Mexican cuisine. The company reported solid Q3 earnings on October 12 and posted an EPS of $7.02, beating the estimates by $0.69. Chipotle Mexican Grill, Inc. (NYSE:CMG) also reported an 80% recovery in in-restaurant sales, compared with pre-pandemic levels.

Recently, Goldman Sachs and Deutsche Bank lifted their price targets on Chipotle Mexican Grill, Inc. (NYSE:CMG) to $2,190 and $1,747, respectively. Since the beginning of the year, Chipotle Mexican Grill, Inc. (NYSE:CMG) delivered a 39% return to shareholders.

At the end of Q2, 35 hedge funds tracked by Insider Monkey reported owning stakes in Chipotle Mexican Grill, Inc. (NYSE:CMG), compared with 41 in the previous quarter. The total value of these stakes is over $3.2 billion.

Ensemble Capital mentioned Chipotle Mexican Grill, Inc. (NYSE:CMG) in its recently published Q3 2021 investor letter. Here is what the firm has to say:

“Chipotle reported their best restaurant-level results since before the foodborne illness outbreak in 2015. Along with raising employee wages, Chipotle raised prices across its menu and saw very little resistance to these price hikes. It held onto 80% of the digital orders it saw during 2020 and its digital orders accounted for nearly 50% of the quarter’s revenue. As a result of its strong momentum, management formally raised its long-term average unit volume target from $2.5 million to $3 million and hinted it could go even higher. Chipotle continues to roll out more Chipotlane drive-thru locations, which generate higher sales and returns on invested capital versus non-Chipotlane stores, while offering customers a more convenient pickup option. They also noted they are pushing forward with international expansion plans. The stock was up 19% in the third quarter and is up 34% year to date.”