Chipotle Mexican Grill (NYSE:CMG) Stock Rating Reaffirmed as Equal Weight by Stephens

Key Points

• Stephens reaffirmed its “equal weight” rating on Chipotle, maintaining a $38 price target—about 32.4% above the stock’s reported $28.70 price.
• Analyst sentiment is somewhat more bullish overall, with 27 Buy ratings and 10 Holds producing a “Moderate Buy” consensus and an average price target of $43.15.
• Chipotle reported quarterly revenue of $3.29 billion, up 9.6% year over year and in line with estimates, but EPS of $0.27 missed the $0.29 consensus amid higher beef and protein costs.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report)'s stock had its "equal weight" rating reiterated by equities researchers at Stephens in a note issued to investors on Thursday, Benzinga reports. They presently have a $38.00 price objective on the restaurant operator's stock. Stephens's target price suggests a potential upside of 32.38% from the stock's current price.

CMG has been the subject of several other research reports. Wells Fargo & Company dropped their target price on shares of Chipotle Mexican Grill from $45.00 to $40.00 and set an "overweight" rating for the company in a report on Wednesday, October 21st. TD Cowen restated a "hold" rating and set a $32.00 price target on shares of Chipotle Mexican Grill in a research note on Thursday. Bank of America restated a "buy" rating and set a $53.00 price target (up from $50.00) on shares of Chipotle Mexican Grill in a research report on Tuesday, September 1st. Piper Sandler dropped their price objective on Chipotle Mexican Grill from $42.00 to $39.00 and set an "overweight" rating for the company in a research note on Thursday, July 30th. Finally, Evercore reiterated an "outperform" rating and issued a $47.00 price objective (up from $45.00) on shares of Chipotle Mexican Grill in a report on Thursday, July 30th. Twenty-seven research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $43.15.

Chipotle Mexican Grill Price Performance

Shares of CMG opened at $28.70 on Thursday. Chipotle Mexican Grill has a 1-year low of $27.31 and a 1-year high of $41.42. The stock has a market cap of $36.32 billion, a PE ratio of 26.33, a P/E/G ratio of 1.67 and a beta of 0.96. The firm has a 50-day simple moving average of $33.20 and a two-hundred day simple moving average of $34.21.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) last released its quarterly earnings results on Wednesday, October 28th. The restaurant operator reported $0.27 earnings per share (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 company had revenue of $3.29 billion during the quarter, compared to analysts' expectations of $3.29 billion. During the same period last year, the firm posted $0.29 earnings per share. Chipotle Mexican Grill's revenue was up 9.6% on a year-over-year basis. As a group, sell-side analysts expect that Chipotle Mexican Grill will post 1.14 earnings per share for the current fiscal year.

Insider Transactions at Chipotle Mexican Grill

In related news, insider Matthew R. Bush sold 2,675 shares of the business's stock in a transaction on Friday, August 21st. The stock was sold at an average price of $35.75, for a total transaction of $95,631.25. Following the completion of the transaction, the insider directly owned 21,415 shares of the company's stock, valued at $765,586.25. The trade was a 11.10% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 0.45% of the company's stock.

Institutional Investors Weigh In On Chipotle Mexican Grill

Large investors have recently bought and sold shares of the stock. BlackRock Inc. purchased a new position in shares of Chipotle Mexican Grill in the 2nd quarter valued at about $4,417,475,000. Arrowstreet Capital Limited Partnership lifted its stake in Chipotle Mexican Grill by 19.8% in the first quarter. Arrowstreet Capital Limited Partnership now owns 16,478,248 shares of the restaurant operator's stock worth $527,469,000 after acquiring an additional 2,727,762 shares during the last quarter. Amundi lifted its stake in Chipotle Mexican Grill by 23.3% in the first quarter. Amundi now owns 11,980,192 shares of the restaurant operator's stock worth $383,486,000 after acquiring an additional 2,266,087 shares during the last quarter. Bank of America Corp DE lifted its stake in Chipotle Mexican Grill by 86.1% in the first quarter. Bank of America Corp DE now owns 11,973,752 shares of the restaurant operator's stock worth $383,280,000 after acquiring an additional 5,541,385 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in Chipotle Mexican Grill by 30.6% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 10,845,627 shares of the restaurant operator's stock worth $368,751,000 after acquiring an additional 2,541,795 shares in the last quarter. Hedge funds and other institutional investors own 91.30% of the company's stock.

Trending Headlines about Chipotle Mexican Grill

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

About Chipotle Mexican Grill

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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