Chipotle Mexican Grill, Inc. (NYSE:CMG) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a bullish outlook: Thirty-three analysts give Chipotle a consensus “Moderate Buy” rating, with 24 buys and nine holds. The average 12-month price target is $44.16, above the reported share price of $32.62.
• Recent results exceeded expectations: Chipotle reported quarterly EPS of $0.33 versus the $0.32 consensus estimate, while revenue reached $3.35 billion and increased 9.3% year over year.
• Institutional ownership is high, but risks remain: Hedge funds and other institutions own 91.3% of the stock, while food-safety investigations and legal scrutiny could pressure customer traffic, brand reputation and costs.

Shares of Chipotle Mexican Grill, Inc. (NYSE:CMG - Get Free Report) have earned a consensus rating of "Moderate Buy" from the thirty-three analysts that are covering the company, Marketbeat.com reports. Nine analysts have rated the stock with a hold rating and twenty-four have issued a buy rating on the company. The average 1-year price objective among brokerages that have covered the stock in the last year is $44.1607.

A number of research firms have recently issued reports on CMG. TD Cowen reissued a "buy" rating and issued a $44.00 price target on shares of Chipotle Mexican Grill in a research report on Thursday, July 30th. BTIG Research reaffirmed a "buy" rating and set a $45.00 price objective on shares of Chipotle Mexican Grill in a research report on Wednesday, August 5th. Mizuho upped their price objective on shares of Chipotle Mexican Grill from $40.00 to $41.00 and gave the company an "outperform" rating in a research note on Monday, July 13th. Stephens reiterated a "positive" rating and issued a $40.00 price objective (up from $36.00) on shares of Chipotle Mexican Grill in a research note on Thursday, July 30th. Finally, Citigroup cut their target price on shares of Chipotle Mexican Grill from $46.00 to $45.00 and set a "buy" rating for the company in a research report on Monday, July 13th.

Chipotle Mexican Grill Trading Up 1.9%

NYSE:CMG opened at $32.62 on Thursday. The business's fifty day moving average price is $33.22 and its 200 day moving average price is $34.21. The firm has a market capitalization of $41.28 billion, a price-to-earnings ratio of 29.93, a PEG ratio of 2.04 and a beta of 0.94. Chipotle Mexican Grill has a 1-year low of $28.03 and a 1-year high of $44.27.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The restaurant operator reported $0.33 EPS for the quarter, topping analysts' consensus estimates of $0.32 by $0.01. Chipotle Mexican Grill had a return on equity of 54.65% and a net margin of 11.43%.The firm had revenue of $3.35 billion during the quarter, compared to analyst estimates of $3.33 billion. During the same period last year, the company posted $0.33 EPS. The business's quarterly revenue was up 9.3% compared to the same quarter last year. Equities analysts forecast that Chipotle Mexican Grill will post 1.14 earnings per share for the current year.

Institutional Trading of Chipotle Mexican Grill

Several hedge funds and other institutional investors have recently modified their holdings of CMG. Norges Bank acquired a new position in Chipotle Mexican Grill in the 4th quarter valued at approximately $711,837,000. Focus Partners Advisor Solutions LLC lifted its position in shares of Chipotle Mexican Grill by 156.9% in the 4th quarter. Focus Partners Advisor Solutions LLC now owns 58,269 shares of the restaurant operator's stock worth $2,156,000 after acquiring an additional 35,589 shares during the period. PensionDanmark Pensionsforsikringsaktieselskab grew its holdings in shares of Chipotle Mexican Grill by 40.2% during the 2nd quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 268,771 shares of the restaurant operator's stock worth $9,138,000 after purchasing an additional 77,002 shares in the last quarter. Marsico Capital Management LLC increased its position in shares of Chipotle Mexican Grill by 234.4% during the fourth quarter. Marsico Capital Management LLC now owns 380,677 shares of the restaurant operator's stock valued at $14,085,000 after purchasing an additional 266,835 shares during the period. Finally, BW Gestao de Investimentos Ltda. acquired a new position in shares of Chipotle Mexican Grill in the fourth quarter valued at $2,890,000. 91.30% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Chipotle Mexican Grill

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

• Positive Sentiment: Chipotle raised its guidance despite still-elevated inflation, suggesting management remains confident in the business outlook. Earlier quarterly results also showed revenue growth and earnings slightly ahead of analyst expectations. Inflation Hasn’t Disappeared, Yet Chipotle Raised Guidance
• Positive Sentiment: The return of Chipotle IQ offers a marketing and loyalty boost, with more than $1 million in free food, rewards points, daily challenges and a new sweepstakes. The campaign could support digital engagement, traffic and customer retention. Chipotle IQ Returns
• Positive Sentiment: Wall Street analysts reportedly see approximately 22% upside from recent levels, maintaining a generally constructive view despite concerns about costs and a cautious consumer. Wall Street Sees Upside in Chipotle
• Neutral Sentiment: Lettuce prices posted a record monthly decline in July. Lower produce costs could help restaurant margins, but a cyclospora outbreak is making consumers more hesitant to eat leafy greens, creating a potential demand and food-safety concern for restaurants. Lettuce Prices Plunge as Cyclospora Spooks Consumers
• Negative Sentiment: Health officials are investigating a multistate Salmonella outbreak reportedly linked to fresh jalapeños, while a Minnesota federal lawsuit has increased scrutiny of Chipotle’s potential food-safety and legal exposure. The headlines have weighed on sentiment and raise risks to traffic, brand reputation and costs. Chipotle Stock and Salmonella Investigation

About Chipotle Mexican Grill

Chipotle Mexican Grill is a fast-casual restaurant company known for its Mexican-inspired menu of burritos, bowls, tacos and salads. Founded in 1993 by Steve Ells, the chain emphasizes fresh, customizable meals made from a limited menu of core ingredients and a focus on ingredient quality. Chipotle operates primarily company-owned restaurants and offers dine-in, takeout, catering and delivery through its own digital platforms and third-party partners.

The company is headquartered in Newport Beach, California, and traces its roots to Denver, Colorado.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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