Why Chipotle Mexican Grill Stock Is Sizzling Ahead Of Earnings

Chipotle Mexican Grill Inc (NYSE: CMG) was featured as the call of the day Monday on CNBC's "Fast Money Halftime Report."

What Happened: RBC Capital analyst Christopher Carril maintained Chipotle Mexican Grill with an Outperform rating and raised RBC's price target from $1,750 to $1,800.

The analyst said he expects Chipotle Mexican Grill to report better-than-expected financial results for the second quarter. The company is set to release its quarterly results on July 20.

Related Link: Expert Ratings For Chipotle Mexican Grill

Terranova's Take: Virtus Investment Partners' Joe Terranova told CNBC that he would have liked to see the analyst raise the price target even higher, because "that's absolutely where Chiptole is going."

The digital transformation of Chipotle Mexican Grill is having a powerful impact on the business, Terranova said.

Mobile ordering is the highest margin portion of the business, he noted. Consumers embraced mobile ordering during the COVID-19 pandemic and they are continuing to order via mobile, he added. 

Chipitole has zero debt on its balance sheet and it's "one of my favorite holdings," Terranova said.

CMG Price Action: Chipotle Mexican Grill is making a new 52-week high in trading today.

At last check Monday, the stock was up 1.47% at $1,617.

Photo: courtesy of Chipotle Mexican Grill.