Bank of New York Mellon Corp Cuts Position in Chipotle Mexican Grill, Inc. $CMG

Key Points

• Bank of New York Mellon reduced its Chipotle stake by 3.5% in the first quarter, selling 247,766 shares and ending with 6.86 million shares valued at about $219.5 million.
• Chipotle opened its first restaurant in Mexico, marking an important international expansion that could create a new growth opportunity for the company.
• Recent updates on CMG were mixed: the stock has been volatile and still faces valuation and margin concerns, even as analysts currently rate it a Moderate Buy overall.

Bank of New York Mellon Corp lowered its holdings in Chipotle Mexican Grill, Inc. (NYSE:CMG - Free Report) by 3.5% in the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 6,858,274 shares of the restaurant operator's stock after selling 247,766 shares during the quarter. Bank of New York Mellon Corp owned 0.53% of Chipotle Mexican Grill worth $219,533,000 as of its most recent filing with the SEC.

Several other institutional investors also recently made changes to their positions in the stock. Revolve Wealth Partners LLC increased 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 valued at $290,000 after buying an additional 214 shares in the last quarter. Centurion Wealth Management LLC grew its holdings in shares of Chipotle Mexican Grill by 3.1% in the 4th quarter. Centurion Wealth Management LLC now owns 8,713 shares of the restaurant operator's stock worth $322,000 after acquiring an additional 260 shares during the period. City State Bank grew its holdings in shares of Chipotle Mexican Grill by 13.4% in the 4th quarter. City State Bank now owns 2,330 shares of the restaurant operator's stock worth $86,000 after acquiring an additional 275 shares during the period. Groupama Asset Managment increased its stake in Chipotle Mexican Grill by 1.9% in the 4th quarter. Groupama Asset Managment now owns 15,596 shares of the restaurant operator's stock valued at $568,000 after purchasing an additional 291 shares in the last quarter. Finally, Cromwell Holdings LLC increased its stake in Chipotle Mexican Grill by 7.4% in the 4th quarter. Cromwell Holdings LLC now owns 4,295 shares of the restaurant operator's stock valued at $159,000 after purchasing an additional 295 shares in 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 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

Chipotle Mexican Grill Price Performance

Shares of NYSE CMG opened at $34.47 on Friday. The company has a market cap of $44.22 billion, a PE ratio of 31.63, a price-to-earnings-growth ratio of 2.23 and a beta of 0.97. Chipotle Mexican Grill, Inc. has a 12 month low of $28.03 and a 12 month high of $54.29. The company has a 50-day simple moving average of $32.60 and a 200-day simple moving average of $34.90.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The restaurant operator reported $0.24 earnings per share (EPS) for the quarter, meeting 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 business 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 company's quarterly revenue was up 7.4% compared to the same quarter last year. On average, analysts anticipate that Chipotle Mexican Grill, Inc. will post 1.13 EPS for the current year.

Analyst Ratings Changes

Several analysts have weighed in on CMG shares. JPMorgan Chase & Co. raised Chipotle Mexican Grill from a "neutral" rating to an "overweight" rating and lowered their target price for the company from $38.00 to $35.00 in a report on Friday, June 5th. Zacks Research raised Chipotle Mexican Grill from a "strong sell" rating to a "hold" rating in a research note on Friday, April 17th. Morgan Stanley set a $37.00 price objective on shares of Chipotle Mexican Grill and gave the stock an "equal weight" rating in a research report on Wednesday, June 3rd. Royal Bank Of Canada reissued an "outperform" rating and issued a $45.00 price objective on shares of Chipotle Mexican Grill in a research note on Thursday, April 30th. Finally, Barclays dropped their target price on shares of Chipotle Mexican Grill from $40.00 to $38.00 and set an "equal weight" rating for the company in a report on Thursday, April 30th. Twenty-three equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $43.86.

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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