Chipotle Mexican Grill (NYSE:CMG) Price Target Raised to $40.00 at Stephens

Key Points

• Stephens raised Chipotle’s price target to $40 from $36 while maintaining an “equal weight” rating, implying 16.55% potential upside from the reported $34.32 share price.
• Chipotle reported quarterly revenue of $3.35 billion, up 9.3% year over year, and EPS of $0.33, narrowly exceeding analyst estimates. Comparable sales rose 2.2%, prompting management to increase its full-year comparable-sales outlook.
• Analyst sentiment remains broadly positive, with 23 Buy, nine Hold and one Sell rating, producing a “Moderate Buy” consensus and a $43.96 average target price. Risks include softer late-July traffic and continued labor and operating-cost pressures.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) had its price objective increased by research analysts at Stephens from $36.00 to $40.00 in a research report issued on Thursday,Benzinga reports. The brokerage presently has an "equal weight" rating on the restaurant operator's stock. Stephens' price target would suggest a potential upside of 16.55% from the company's current price.

A number of other research analysts also recently weighed in on CMG. Weiss Ratings downgraded Chipotle Mexican Grill from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, July 24th. Piper Sandler dropped their price target on Chipotle Mexican Grill from $44.00 to $42.00 and set an "overweight" rating on the stock in a research report on Thursday, April 30th. Zacks Research raised Chipotle Mexican Grill from a "strong sell" rating to a "hold" rating in a research note on Friday, April 17th. BTIG Research reaffirmed a "buy" rating and issued a $45.00 price target on shares of Chipotle Mexican Grill in a research note on Thursday. Finally, BNP Paribas Exane increased their price objective on Chipotle Mexican Grill from $37.00 to $39.00 and gave the stock a "neutral" rating in a report on Thursday, April 30th. Twenty-three investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Chipotle Mexican Grill currently has a consensus rating of "Moderate Buy" and a consensus target price of $43.96.

Chipotle Mexican Grill Trading Up 2.4%

Shares of CMG opened at $34.32 on Thursday. Chipotle Mexican Grill has a 1-year low of $28.03 and a 1-year high of $44.54. The firm's 50-day moving average price is $32.65 and its 200-day moving average price is $34.61. The firm has a market capitalization of $44.02 billion, a price-to-earnings ratio of 31.49, a PEG ratio of 2.19 and a beta of 0.97.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The restaurant operator reported $0.33 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.32 by $0.01. Chipotle Mexican Grill had a net margin of 11.96% and a return on equity of 49.64%. The company had revenue of $3.35 billion during the quarter, compared to the consensus estimate of $3.33 billion. During the same period in the prior year, the firm earned $0.33 earnings per share. Chipotle Mexican Grill's revenue was up 9.3% on a year-over-year basis. On average, research analysts forecast that Chipotle Mexican Grill will post 1.13 EPS for the current fiscal year.

Hedge Funds Weigh In On Chipotle Mexican Grill

Several large investors have recently made changes to their positions in the business. Revolve Wealth Partners LLC boosted its position in shares of Chipotle Mexican Grill by 4.7% in the 4th 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 in the last quarter. City State Bank increased its position in Chipotle Mexican Grill by 13.4% during the 4th quarter. City State Bank now owns 2,330 shares of the restaurant operator's stock valued at $86,000 after buying an additional 275 shares in the last quarter. Groupama Asset Managment increased its position in Chipotle Mexican Grill by 1.9% during the 4th quarter. Groupama Asset Managment now owns 15,596 shares of the restaurant operator's stock valued at $568,000 after buying an additional 291 shares in the last quarter. Cromwell Holdings LLC raised its stake in Chipotle Mexican Grill by 7.4% during the fourth quarter. Cromwell Holdings LLC now owns 4,295 shares of the restaurant operator's stock valued at $159,000 after buying an additional 295 shares during the last quarter. Finally, Catalyst Financial Partners LLC raised its stake in Chipotle Mexican Grill by 4.6% during the fourth quarter. Catalyst Financial Partners LLC now owns 6,763 shares of the restaurant operator's stock valued at $250,000 after buying an additional 298 shares during the last quarter. 91.30% of the stock is currently owned by hedge funds and other institutional investors.

Chipotle Mexican Grill News Summary

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

• Positive Sentiment: Chipotle reported second-quarter revenue of $3.35 billion, up 9.3% year over year and slightly above estimates, while adjusted earnings of $0.33 per share exceeded the consensus forecast of $0.32. Chipotle raises annual sales forecast
• Positive Sentiment: Comparable restaurant sales increased 2.2%, with transactions improving for a second consecutive quarter. Value offerings, menu updates and Chipotle’s broader “Recipe for Growth” strategy appear to be helping attract customers in a competitive restaurant market. Chipotle raises full-year comparable sales guidance
• Positive Sentiment: Management raised its full-year comparable-sales forecast, signaling confidence that second-quarter momentum can continue. The company also opened 100 restaurants during the quarter, supporting longer-term unit and revenue growth. Chipotle Mexican Grill posts higher sales
• Neutral Sentiment: Chipotle said it was not involved in the reported cyclospora outbreak, limiting the potential for direct reputational or regulatory damage. However, management acknowledged that related fears affected customer traffic late in July. Chipotle stock rises after earnings
• Negative Sentiment: Investors still face risks from softer late-July traffic, value-conscious consumers and pressure from labor and operating costs. Commentary noting margin challenges could limit the benefit of the earnings and sales beats. Chipotle lifts its sales forecast

Chipotle Mexican Grill Company Profile

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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