Chipotle Mexican Grill (NYSE:CMG) Earns "Outperform" Rating from Oppenheimer

Key Points

• Oppenheimer reaffirmed its “outperform” rating on Chipotle, setting a $51 price target—about 65% above the stock’s previous close.
• Analyst sentiment is generally positive, with 27 Buy ratings and 10 Holds producing a “Moderate Buy” consensus and an average price target of $43.15.
• Chipotle’s latest quarter showed revenue rising 9.6% year over year to $3.29 billion, but EPS of $0.27 missed the $0.29 consensus as higher beef and protein costs pressured profitability.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report)'s stock had its "outperform" rating reissued by stock analysts at Oppenheimer in a research report issued on Thursday, Benzinga reports. They currently have a $51.00 target price on the restaurant operator's stock. Oppenheimer's price objective suggests a potential upside of 65.41% from the stock's previous close.

CMG has been the subject of a number of other reports. Sanford C. Bernstein restated an "outperform" rating and set a $50.00 price objective (up from $40.00) on shares of Chipotle Mexican Grill in a research note on Friday, July 31st. Deutsche Bank Aktiengesellschaft decreased their price objective on shares of Chipotle Mexican Grill from $51.00 to $45.00 and set a "buy" rating for the company in a report on Wednesday, October 21st. Wells Fargo & Company cut their target price on Chipotle Mexican Grill from $45.00 to $40.00 and set an "overweight" rating on the stock in a research note on Wednesday, October 21st. Weiss Ratings upgraded Chipotle Mexican Grill from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Friday, August 7th. Finally, Seaport Research Partners began coverage on Chipotle Mexican Grill in a research note on Wednesday, September 16th. They issued a "neutral" rating for the company. Twenty-seven investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat.com, Chipotle Mexican Grill currently has a consensus rating of "Moderate Buy" and a consensus price target of $43.15.

Chipotle Mexican Grill Stock Performance

CMG stock opened at $30.83 on Thursday. Chipotle Mexican Grill has a 52 week low of $27.31 and a 52 week high of $41.42. The firm's fifty day moving average is $33.20 and its 200 day moving average is $34.21. The firm has a market cap of $39.02 billion, a P/E ratio of 28.27, a P/E/G ratio of 1.67 and a beta of 0.96.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) last announced its earnings results on Wednesday, October 28th. The restaurant operator reported $0.27 EPS for the quarter, missing analysts' consensus estimates of $0.29 by ($0.02). Chipotle Mexican Grill had a net margin of 11.43% and a return on equity of 54.65%. The business had revenue of $3.29 billion for the quarter, compared to the consensus estimate of $3.29 billion. During the same quarter in the prior year, the company earned $0.29 EPS. Chipotle Mexican Grill's revenue was up 9.6% compared to the same quarter last year. As a group, analysts forecast that Chipotle Mexican Grill will post 1.14 EPS for the current year.

Insider Activity at Chipotle Mexican Grill

In related news, insider Matthew R. Bush sold 2,675 shares of the firm's stock in a transaction on Friday, August 21st. The stock was sold at an average price of $35.75, for a total value of $95,631.25. Following the transaction, the insider directly owned 21,415 shares of the company's stock, valued at approximately $765,586.25. This trade represents a 11.10% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.45% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Mirae Asset Global Investments Co. Ltd. bought a new position in shares of Chipotle Mexican Grill during the 3rd quarter valued at approximately $10,854,000. Invera Wealth Advisors LLC boosted its stake in Chipotle Mexican Grill by 10.9% during the third quarter. Invera Wealth Advisors LLC now owns 36,355 shares of the restaurant operator's stock worth $1,162,000 after buying an additional 3,586 shares during the period. MGO One Seven LLC boosted its stake in Chipotle Mexican Grill by 8.7% during the third quarter. MGO One Seven LLC now owns 53,760 shares of the restaurant operator's stock worth $1,718,000 after buying an additional 4,296 shares during the period. State of Wyoming boosted its stake in Chipotle Mexican Grill by 105.7% during the third quarter. State of Wyoming now owns 9,390 shares of the restaurant operator's stock worth $300,000 after buying an additional 4,825 shares during the period. Finally, Whelan Financial increased its position in Chipotle Mexican Grill by 11.1% during the third quarter. Whelan Financial now owns 23,591 shares of the restaurant operator's stock valued at $754,000 after acquiring an additional 2,364 shares during the last quarter. 91.30% of the stock is currently owned by institutional investors.

Chipotle Mexican Grill News Roundup

Here are the key news stories impacting Chipotle Mexican Grill this week:

• Positive Sentiment: Third-quarter revenue rose 9.6% year over year to $3.29 billion, in line with expectations, while comparable-restaurant sales increased 2.1%. Chipotle also reported positive transaction growth for the third consecutive quarter, supported by value offerings and limited-time promotions. Chipotle beats quarterly sales expectations on resilient demand
• Positive Sentiment: Expansion remains a key growth driver: Chipotle opened 84 company-owned restaurants during the quarter, while its loyalty program surpassed 24 million members. Management also expects broader adoption of drive-thru “Chipotlanes” to support sales. Chipotle: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Investors are looking to the fourth-quarter launch of brisket as a potential catalyst. The limited-time protein offering could help sustain traffic and sales momentum if customer demand remains strong. The rest of Chipotle's year hinges on brisket
• Positive Sentiment: BTIG Research reaffirmed its “buy” rating and set a $45 price target, implying substantial upside from recent trading levels. BTIG Research rating
• Neutral Sentiment: Analyst opinion remains mixed. TD Cowen maintained a “hold” rating with a $32 target, while Bernstein reduced its target to $43 from $50, signaling confidence in the brand but more cautious expectations for near-term growth. Bernstein adjusts price target
• Negative Sentiment: Adjusted earnings per share fell to $0.27 from $0.29 a year earlier and missed the $0.29 consensus estimate. Rising beef costs, higher protein usage and menu-price increases are adding pressure to profitability. Chipotle earnings miss estimates

Chipotle Mexican Grill Company Profile

Chipotle Mexican Grill, Inc NYSE: CMG operates a chain of fast-casual restaurants focused on Mexican-inspired food. Its menu includes burritos, burrito bowls, tacos, quesadillas and salads, with options such as chicken, steak, barbacoa, carnitas, sofritas and vegetables. The company emphasizes preparing food in its restaurants from ingredients it describes as responsibly sourced, including meats raised with attention to animal welfare and produce from selected suppliers.

Founded by Steve Ells in 1993, Chipotle opened its first restaurant in Denver, Colorado.

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