Kentucky Retirement Systems Sells 81,663 Shares of Chipotle Mexican Grill, Inc. $CMG

Key Points

• Kentucky Retirement Systems cut its Chipotle stake by 97%, selling 81,663 shares and retaining 2,555 shares worth approximately $82,000. Institutional investors collectively own 91.3% of the company.
• Chipotle exceeded quarterly expectations with $0.33 earnings per share and $3.35 billion in revenue, up 9.3% year over year. Comparable sales rose 2.2%, and management raised its full-year comparable-sales outlook.
• Analysts remain broadly positive, with 24 Buy, eight Hold and one Sell rating and a consensus “Moderate Buy” rating; however, concerns over late-July traffic softness and rising labor and operating costs could pressure margins.

Kentucky Retirement Systems lowered its position in Chipotle Mexican Grill, Inc. (NYSE:CMG - Free Report) by 97.0% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 2,555 shares of the restaurant operator's stock after selling 81,663 shares during the quarter. Kentucky Retirement Systems' holdings in Chipotle Mexican Grill were worth $82,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors have also added to or reduced their stakes in the business. Wealth Watch Advisors INC acquired a new position in Chipotle Mexican Grill in the 3rd quarter valued at approximately $25,000. MV Capital Management Inc. bought a new position in shares of Chipotle Mexican Grill during the fourth quarter valued at $26,000. Osbon Capital Management LLC acquired a new position in shares of Chipotle Mexican Grill during the fourth quarter worth $28,000. Merkkuri Wealth Advisors LLC acquired a new position in shares of Chipotle Mexican Grill during the first quarter worth $28,000. Finally, Ankerstar Wealth LLC bought a new stake in shares of Chipotle Mexican Grill in the fourth quarter worth $33,000. Institutional investors own 91.30% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on CMG shares. Mizuho increased their price objective on Chipotle Mexican Grill from $40.00 to $41.00 and gave the company an "outperform" rating in a report on Monday, July 13th. Stephens reaffirmed a "positive" rating and set a $40.00 target price (up from $36.00) on shares of Chipotle Mexican Grill in a report on Thursday. Weiss Ratings lowered Chipotle Mexican Grill from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, July 24th. Morgan Stanley increased their price target on Chipotle Mexican Grill from $37.00 to $39.00 and gave the company an "equal weight" rating in a research note on Thursday. Finally, Zacks Research raised Chipotle Mexican Grill from a "strong sell" rating to a "hold" rating in a research note on Friday, April 17th. Twenty-four research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $43.98.

Chipotle Mexican Grill Stock Down 3.1%

CMG opened at $37.31 on Friday. Chipotle Mexican Grill, Inc. has a twelve month low of $28.03 and a twelve month high of $44.27. The company has a fifty day moving average of $32.85 and a 200-day moving average of $34.62. The stock has a market cap of $47.86 billion, a PE ratio of 34.23, a price-to-earnings-growth ratio of 2.41 and a beta of 0.97.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) last announced its earnings results on Wednesday, July 29th. The restaurant operator reported $0.33 earnings per share for the quarter, topping analysts' consensus estimates of $0.32 by $0.01. The business had revenue of $3.35 billion during the quarter, compared to the consensus estimate of $3.33 billion. Chipotle Mexican Grill had a net margin of 11.43% and a return on equity of 54.65%. Chipotle Mexican Grill's quarterly revenue was up 9.3% on a year-over-year basis. During the same quarter last year, the firm earned $0.33 earnings per share. Sell-side analysts anticipate that Chipotle Mexican Grill, Inc. will post 1.14 EPS for the current fiscal year.

More Chipotle Mexican Grill News

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

• Positive Sentiment: Chipotle reported second-quarter adjusted EPS of $0.33, slightly above the $0.32 consensus, while revenue rose 9.3% year over year to $3.35 billion, broadly ahead of expectations. Chipotle Mexican Grill Stock Rallies as Q2 Results Top Fears, Guidance Rises
• Positive Sentiment: Comparable restaurant sales increased 2.2%, supported by improving customer traffic, menu innovation, digital engagement and restaurant expansion. Management raised its full-year comparable-sales outlook, signaling confidence that momentum is continuing. Chipotle shares rise on quarterly earnings beat, raised outlook
• Positive Sentiment: Analysts remained constructive following the results. DA Davidson raised its price target to $50 and maintained a Buy rating, while BTIG, TD Cowen and Mizuho also retained positive recommendations; Mizuho lifted its target to $43.
• Neutral Sentiment: Unusually heavy call-option activity and multiple price-target revisions indicate heightened investor interest, but these signals can also contribute to short-term volatility rather than establish a lasting trend.
• Negative Sentiment: Management said sales softened late in July amid consumer concerns about a cyclospora outbreak, although Chipotle stated it was not involved in the outbreak. The traffic disruption has raised questions about the durability of the recovery. Chipotle lifts its sales forecast even as a lettuce-linked outbreak slows foot traffic
• Negative Sentiment: Investors also remain concerned about labor and other operating costs pressuring margins. Piper Sandler lowered its target to $39 and Morgan Stanley and Stephens kept more cautious equal-weight ratings, limiting the stock’s upside after its sharp earnings-related advance.

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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