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

Key Points

• Chipotle Mexican Grill has a consensus analyst rating of “Moderate Buy”, with 23 buy ratings and 10 hold ratings across 33 covering firms. The average 1-year price target is about $43.86.
• The stock has recently benefited from positive headlines, including reassurance that Chipotle was not affected by the cyclosporiasis outbreak linked to some Taco Bell locations and news that it opened its first restaurant in Mexico.
• Despite the upbeat sentiment, commentary notes that valuation and margin pressure remain key concerns, and the shares have been volatile after a significant year-to-date decline.

Shares of Chipotle Mexican Grill, Inc. (NYSE:CMG - Get Free Report) have been given a consensus rating of "Moderate Buy" by the thirty-three research firms that are covering the stock, Marketbeat reports. Ten analysts have rated the stock with a hold rating and twenty-three have assigned a buy rating to the company. The average 1 year price objective among brokerages that have covered the stock in the last year is $43.8571.

CMG has been the topic of several analyst reports. Citigroup lowered their price objective on Chipotle Mexican Grill from $46.00 to $45.00 and set a "buy" rating on the stock in a research report on Monday, July 13th. Zacks Research raised Chipotle Mexican Grill from a "strong sell" rating to a "hold" rating in a report on Friday, April 17th. Stephens boosted their price target on Chipotle Mexican Grill from $38.00 to $39.00 and gave the stock an "equal weight" rating in a research note on Thursday, April 30th. Weiss Ratings raised Chipotle Mexican Grill from a "sell (d+)" rating to a "hold (c-)" rating in a report on Thursday, June 25th. Finally, BTIG Research reaffirmed a "buy" rating and set a $45.00 price objective on shares of Chipotle Mexican Grill in a research report on Thursday, April 30th.

More Chipotle Mexican Grill News

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

• Positive Sentiment: Chipotle and Wendy’s said their restaurants were not affected by the cyclosporiasis outbreak linked to lettuce at some Taco Bell locations, easing fears that the issue would spread to other fast-casual chains. Reuters article on cyclosporiasis outbreak
• Positive Sentiment: Chipotle opened its first restaurant in Mexico, a long-awaited international debut that could expand the brand’s growth runway and support sentiment around future store growth. Reuters article on Mexico debut
• Neutral Sentiment: Several analysts and market commentary pieces framed CMG as having improving traffic and rewards growth, but also noted that valuation and margin pressure remain key debates for the stock. Yahoo Finance comparison article
• Neutral Sentiment: Some commentary said Chipotle still looks fully priced after its recent decline, suggesting valuation may limit upside even after the recent rebound. Yahoo Finance valuation article
• Negative Sentiment: At least one market update said Chipotle underperformed peers on Thursday, reinforcing that the stock has been volatile and is still recovering from a sharp year-to-date slide. MarketWatch underperformance article

Institutional Trading of Chipotle Mexican Grill

Institutional investors have recently made changes to their positions in the stock. Revolve Wealth Partners LLC boosted its holdings in Chipotle Mexican Grill by 4.7% in the fourth quarter. Revolve Wealth Partners LLC now owns 4,804 shares of the restaurant operator's stock worth $290,000 after purchasing an additional 214 shares during the last quarter. Bison Wealth LLC purchased a new stake in Chipotle Mexican Grill during the 4th quarter valued at $224,000. Empowered Funds LLC lifted its holdings in shares of Chipotle Mexican Grill by 5.5% during the 1st quarter. Empowered Funds LLC now owns 26,460 shares of the restaurant operator's stock valued at $1,329,000 after buying an additional 1,368 shares during the period. Osterweis Capital Management Inc. lifted its holdings in shares of Chipotle Mexican Grill by 7,176.0% during the 2nd quarter. Osterweis Capital Management Inc. now owns 1,819 shares of the restaurant operator's stock valued at $102,000 after buying an additional 1,794 shares during the period. Finally, Ieq Capital LLC boosted its stake in shares of Chipotle Mexican Grill by 88.8% in the 2nd quarter. Ieq Capital LLC now owns 274,375 shares of the restaurant operator's stock worth $15,406,000 after buying an additional 129,066 shares during the last quarter. Hedge funds and other institutional investors own 91.30% of the company's stock.

Chipotle Mexican Grill Stock Performance

NYSE:CMG opened at $34.47 on Friday. The firm has a market cap of $44.22 billion, a P/E ratio of 31.63, a P/E/G ratio of 2.23 and a beta of 0.97. Chipotle Mexican Grill has a fifty-two week low of $28.03 and a fifty-two week high of $54.29. The firm has a 50-day simple moving average of $32.60 and a two-hundred day simple moving average of $34.90.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) last issued its earnings results on Wednesday, April 29th. The restaurant operator reported $0.24 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.24. Chipotle Mexican Grill had a net margin of 11.96% and a return on equity of 49.64%. The firm had revenue of $3.09 billion for the quarter, compared to the consensus estimate of $3.07 billion. During the same quarter in the prior year, the firm posted $0.29 earnings per share. The business's revenue was up 7.4% on a year-over-year basis. On average, equities research analysts predict that Chipotle Mexican Grill will post 1.13 EPS for the current year.

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.

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