Chipotle Mexican Grill, Inc. $CMG Holdings Cut by Alpha Cubed Investments LLC

Key Points

• Alpha Cubed Investments cut its Chipotle stake by 96.3% in Q4, selling 204,281 shares and retaining just 7,920 shares worth about $293,000.
• Major institutions added exposure—Vanguard now owns 144,588,220 shares (≈$5.35B) and hedge funds/institutions collectively hold 91.3% of CMG—while several other large managers significantly increased positions.
• Company catalysts: Q1 slightly beat revenue with positive comps and management plans for ~370 new restaurants and a more constructive analyst consensus, but margin pressure and PR/portion-related noise present near-term risks.

Alpha Cubed Investments LLC decreased its stake in Chipotle Mexican Grill, Inc. (NYSE:CMG - Free Report) by 96.3% in the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 7,920 shares of the restaurant operator's stock after selling 204,281 shares during the quarter. Alpha Cubed Investments LLC's holdings in Chipotle Mexican Grill were worth $293,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its holdings in shares of Chipotle Mexican Grill by 14.8% during the 4th quarter. Vanguard Group Inc. now owns 144,588,220 shares of the restaurant operator's stock valued at $5,349,764,000 after purchasing an additional 18,660,882 shares in the last quarter. Capital World Investors raised its holdings in shares of Chipotle Mexican Grill by 122.7% during the 3rd quarter. Capital World Investors now owns 87,844,788 shares of the restaurant operator's stock valued at $3,442,645,000 after purchasing an additional 48,398,628 shares in the last quarter. Capital International Investors raised its holdings in shares of Chipotle Mexican Grill by 42.4% during the 3rd quarter. Capital International Investors now owns 38,497,927 shares of the restaurant operator's stock valued at $1,509,043,000 after purchasing an additional 11,471,658 shares in the last quarter. Sustainable Growth Advisers LP raised its holdings in shares of Chipotle Mexican Grill by 17.5% during the 3rd quarter. Sustainable Growth Advisers LP now owns 12,495,638 shares of the restaurant operator's stock valued at $489,704,000 after purchasing an additional 1,862,855 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its holdings in shares of Chipotle Mexican Grill by 24.7% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 11,433,637 shares of the restaurant operator's stock valued at $448,084,000 after purchasing an additional 2,265,122 shares in the last quarter. Hedge funds and other institutional investors own 91.30% of the company's stock.

Key Chipotle Mexican Grill News

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

• Positive Sentiment: Argus upgraded CMG from Hold to Buy and set a $40 price target, arguing management is being conservative with guidance and that comparable-sales momentum could accelerate — a bullish catalyst for medium-term upside. Argus Upgrade
• Positive Sentiment: Q1 results: revenue slightly beat estimates, comps and transactions were positive, and management outlined plans for up to ~370 new restaurant openings — supports growth narrative and long-term revenue expansion. Q1/Expansion Analysis
• Positive Sentiment: Consensus/analyst tone is turning constructive (consensus “Moderate Buy” and recent coverage pickups), which can drive improved sentiment and buy-side interest if results continue to beat. Analyst Consensus
• Neutral Sentiment: Retail attention: Zacks notes heightened investor searches for CMG — signals interest/volatility but not a directional fundamental change. Zacks Interest
• Neutral Sentiment: CEO remarks on portion sizes (telling customers to “ask for more”) are being amplified in the press — explains management stance on service/experience but may be more PR/noise than a material change. CEO Portion Comments
• Neutral Sentiment: New industry tools (Sightline OS AI supply-chain platform) could improve restaurant inventory/COGS broadly — potential tailwind for chains that adopt similar tech, but impact on Chipotle is unspecified. Sightline OS Launch
• Negative Sentiment: Margin pressure: several pieces highlight falling margins and investor caution — the most direct near-term risk to earnings multiple and sentiment if margins don’t stabilize. Margins Concern
• Negative Sentiment: Reputational/PR friction: social media and press coverage questioning portion claims and the stock’s one-year slide increase short-term sentiment risk — could amplify volatility even as fundamentals evolve. Customer Backlash

Wall Street Analyst Weigh In

A number of research firms recently issued reports on CMG. Piper Sandler lowered their target price on shares of Chipotle Mexican Grill from $44.00 to $42.00 and set an "overweight" rating on the stock in a research note on Thursday, April 30th. Citigroup raised their target price on shares of Chipotle Mexican Grill from $44.00 to $46.00 and gave the company a "buy" rating in a research note on Thursday, April 30th. Zacks Research upgraded shares of Chipotle Mexican Grill from a "strong sell" rating to a "hold" rating in a research note on Friday, April 17th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $48.00 target price on shares of Chipotle Mexican Grill in a research note on Wednesday, February 4th. Finally, Morgan Stanley lowered their target price on shares of Chipotle Mexican Grill from $50.00 to $49.00 and set an "overweight" rating on the stock in a research note on Wednesday, February 4th. Twenty-four equities research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company. According to data from MarketBeat.com, Chipotle Mexican Grill has an average rating of "Moderate Buy" and a consensus price target of $46.03.

Chipotle Mexican Grill Price Performance

NYSE CMG opened at $32.74 on Thursday. The firm has a market capitalization of $41.99 billion, a price-to-earnings ratio of 30.03, a P/E/G ratio of 2.08 and a beta of 1.03. The company's fifty day moving average is $34.19 and its two-hundred day moving average is $35.77. Chipotle Mexican Grill, Inc. has a 52-week low of $29.75 and a 52-week high of $58.42.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) last posted its quarterly 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. The company had revenue of $3.09 billion for the quarter, compared to analyst estimates of $3.07 billion. Chipotle Mexican Grill had a net margin of 11.96% and a return on equity of 49.64%. The business's quarterly revenue was up 7.4% on a year-over-year basis. During the same period last year, the business posted $0.29 EPS. As a group, sell-side analysts expect that Chipotle Mexican Grill, Inc. will post 1.13 earnings per share for the current fiscal year.

Chipotle Mexican Grill 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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