A restaurant is always a good choice for nights when you just can’t bring yourself to cook. Domino’s Pizza (NYSE:DPZ), Chipotle (NASDAQ:CMG), and several others just got an analyst nod that should come in extra handy. Both Domino’s and Chipotle are down slightly in Thursday afternoon’s trading.
Word came out of UBS (NYSE:UBS) via analyst Dennis Geiger, who declared several restaurant brands to be “opportunities” despite a sector that’s likely to see challenges in 2023. Not surprisingly, the macroeconomic environment is souring to the point where people are likely to stay home and cook more. However, that problem won’t hit every restaurant equally. Several chains, Geiger notes, have the opportunity to step up and improve their margins, as well as their performance overall. Geiger even hiked Domino’s share price target from $385 per share to $410.
Geiger is hardly alone, either. Bank of America recently declared Domino’s to be a top first-quarter of 2023 stock idea, and Chipotle is making some headway with unique ideas. It recently announced plans to use augmented reality to improve wellness around its new “Lifestyle Bowls” concept. Those who complete the challenge laid out accordingly will get a free small side coupon. Chipotle notes that this is the first time a restaurant has ever used this kind of augmented reality promotion.
Wall Street, meanwhile, is somewhat split on just how valuable these two restaurants will prove. Analyst consensus calls Domino’s a Moderate Buy, while Chipotle is considered a Strong Buy. Domino’s average price target of $379.82 per share gives it 12.1% upside potential. Chipotle, meanwhile, offers 30.81% upside potential from its average price target of $1,784.40 per share.
