FAS Wealth Partners Inc. Sells 35,326 Shares of Chipotle Mexican Grill, Inc. $CMG

Key Points

• FAS Wealth Partners cut its Chipotle stake by 82.4%, selling 35,326 shares during the first quarter and retaining 7,563 shares valued at approximately $242,000.
• Chipotle reported a strong second quarter, with revenue rising 9.3% year over year to $3.35 billion and adjusted EPS of $0.33, exceeding analyst expectations slightly.
• Despite broadly positive analyst sentiment—a “Moderate Buy” consensus and average $44.16 price target—Chipotle faces risks from Minnesota salmonella concerns and a newly announced fraud investigation.

FAS Wealth Partners Inc. decreased its holdings in Chipotle Mexican Grill, Inc. (NYSE:CMG - Free Report) by 82.4% in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 7,563 shares of the restaurant operator's stock after selling 35,326 shares during the quarter. FAS Wealth Partners Inc.'s holdings in Chipotle Mexican Grill were worth $242,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also bought and sold shares of CMG. Norges Bank bought a new position in shares of Chipotle Mexican Grill during the fourth quarter worth approximately $711,837,000. Vanguard Group Inc. boosted its stake in shares of Chipotle Mexican Grill by 14.8% in the fourth quarter. Vanguard Group Inc. now owns 144,588,220 shares of the restaurant operator's stock valued at $5,349,764,000 after buying an additional 18,660,882 shares during the period. Capital World Investors boosted its stake in shares of Chipotle Mexican Grill by 15.8% in the fourth quarter. Capital World Investors now owns 101,688,010 shares of the restaurant operator's stock valued at $3,762,457,000 after buying an additional 13,843,222 shares during the period. Clearbridge Investments LLC grew its position in Chipotle Mexican Grill by 206.4% during the fourth quarter. Clearbridge Investments LLC now owns 14,062,158 shares of the restaurant operator's stock worth $520,300,000 after buying an additional 9,473,120 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD grew its position in Chipotle Mexican Grill by 18.8% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 58,447,867 shares of the restaurant operator's stock worth $2,162,572,000 after buying an additional 9,237,720 shares in the last quarter. Institutional investors and hedge funds 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: Strong second-quarter performance: Chipotle reported revenue of $3.35 billion, up 9.3% year over year, and non-GAAP earnings of $0.33 per share, slightly exceeding analyst expectations. Menu innovation, digital investments and transaction growth supported results. CMG Q2 Deep Dive: Menu Innovation and Digital Investments Drive Transaction Gains
• Positive Sentiment: Argus raised its price target: Argus increased its target for CMG from $40 to $45 and maintained a “buy” rating, indicating confidence in the company’s longer-term growth prospects. Benzinga analyst price-target report
• Neutral Sentiment: Limited regional exposure identified: Chipotle removed jalapeños from multiple Minnesota locations and cooperated with health officials. Authorities reportedly said they were no longer concerned about continued exposure, which may limit the immediate operational impact, although the investigation remains a reputational risk. Chipotle Pulled Jalapeños Tied to Minnesota Salmonella Cases
• Negative Sentiment: Salmonella concerns pressured the stock: Minnesota officials reported more than 100 illnesses, with jalapeños at Chipotle restaurants identified as a possible source. Investors fear potential customer traffic disruption, regulatory scrutiny, legal costs and renewed damage to Chipotle’s food-safety reputation. Chipotle Shares Hammered as Minnesota Salmonella Outbreak Triggers Jalapeño Removal
• Negative Sentiment: Potential legal overhang: A law firm announced a fraud investigation and invited CMG investors to participate, adding another source of litigation and reputational risk. The announcement does not establish wrongdoing. CMG Investors Have Opportunity to Join Chipotle Mexican Grill, Inc. Fraud Investigation with SBS Law

Chipotle Mexican Grill Stock Performance

Chipotle Mexican Grill stock opened at $33.86 on Wednesday. Chipotle Mexican Grill, Inc. has a 52 week low of $28.03 and a 52 week high of $44.27. The stock has a market capitalization of $42.84 billion, a P/E ratio of 31.06, a price-to-earnings-growth ratio of 2.39 and a beta of 0.94. The stock has a fifty day moving average of $32.97 and a 200-day moving average of $34.52.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The restaurant operator reported $0.33 earnings per share for the quarter, beating the consensus estimate 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 business had revenue of $3.35 billion for the quarter, compared to analyst estimates of $3.33 billion. During the same period last year, the firm posted $0.33 earnings per share. Chipotle Mexican Grill's revenue was up 9.3% compared to the same quarter last year. On average, research analysts forecast that Chipotle Mexican Grill, Inc. will post 1.14 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on CMG shares. BTIG Research reaffirmed a "buy" rating and issued a $45.00 price objective on shares of Chipotle Mexican Grill in a report on Thursday, July 30th. TD Cowen reissued a "buy" rating and set a $44.00 target price on shares of Chipotle Mexican Grill in a report on Thursday, July 30th. Barclays reduced their target price on Chipotle Mexican Grill from $40.00 to $38.00 and set an "equal weight" rating on the stock in a 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. Finally, Guggenheim reaffirmed a "neutral" rating and issued a $36.00 price target (up from $35.00) on shares of Chipotle Mexican Grill in a research note on Friday. Twenty-four investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $44.16.

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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