PensionDanmark Pensionsforsikringsaktieselskab Purchases 77,002 Shares of Chipotle Mexican Grill, Inc. $CMG

Key Points

• PensionDanmark increased its Chipotle stake by 40.2% in the second quarter, purchasing 77,002 additional shares and bringing its holdings to 268,771 shares valued at approximately $9.14 million.
• Chipotle’s latest quarter slightly exceeded expectations, with adjusted EPS of $0.33 and revenue of $3.35 billion, while comparable sales rose 2.2%; however, higher food and labor costs pressured margins.
• Food-safety concerns are weighing on the stock after the CDC linked a multistate Salmonella outbreak to jalapeños served at Chipotle and other restaurants, raising potential disruption, liability and reputational risks despite analysts’ generally positive ratings.

PensionDanmark Pensionsforsikringsaktieselskab increased its holdings in shares of Chipotle Mexican Grill, Inc. (NYSE:CMG - Free Report) by 40.2% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 268,771 shares of the restaurant operator's stock after buying an additional 77,002 shares during the quarter. PensionDanmark Pensionsforsikringsaktieselskab's holdings in Chipotle Mexican Grill were worth $9,138,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Wealth Watch Advisors INC acquired a new stake in shares of Chipotle Mexican Grill during the third quarter worth about $25,000. MV Capital Management Inc. bought a new position in shares of Chipotle Mexican Grill during the 4th quarter valued at about $26,000. Osbon Capital Management LLC acquired a new position in shares of Chipotle Mexican Grill in the 4th quarter valued at approximately $28,000. Merkkuri Wealth Advisors LLC acquired a new position in shares of Chipotle Mexican Grill in the 1st quarter valued at approximately $28,000. Finally, Rule One Partners LLC bought a new stake in Chipotle Mexican Grill during the 1st quarter worth approximately $32,000. 91.30% of the stock is currently owned by institutional investors.

Key Headlines Impacting Chipotle Mexican Grill

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

• Positive Sentiment: Analyst support remains intact: BTIG Research reaffirmed its Buy rating, while Argus raised its price target to $45, indicating that some analysts view the selloff as excessive and believe Chipotle’s long-term growth story remains attractive. BTIG Research Reaffirms Buy Rating for Chipotle Mexican Grill Argus Raises Chipotle Price Target
• Neutral Sentiment: Recent quarterly results were slightly better than expected: Chipotle reported adjusted earnings of $0.33 per share versus the $0.32 consensus estimate and revenue of $3.35 billion versus expectations of $3.33 billion. Comparable sales rebounded 2.2%, supported by menu innovation and an improved rewards program, although higher food and labor costs pressured profitability. Chipotle: One Good Quarter Doesn't Reset the Risk Profile
• Negative Sentiment: Food-safety concerns are driving the selloff: The CDC linked a Salmonella outbreak across 27 states to jalapeño peppers served at Chipotle and other Mexican-style restaurants. Reports say hundreds of people have been sickened, while authorities continue investigating the source and whether contaminated peppers reached grocery stores. Chipotle Stock Extends Slide After CDC Links Salmonella Outbreak to Jalapeños
• Negative Sentiment: Potential business and reputation risks are increasing: Chipotle removed jalapeños from Minnesota restaurants, shifted to another supplier and is cooperating with health officials. Investors are concerned about restaurant disruptions, possible liability and damage to customer traffic, particularly because the incident recalls the company’s prior food-safety crisis. Chipotle Pulls Jalapeños After Minnesota Salmonella Outbreak
• Negative Sentiment: Valuation and margin pressure add to the downside: One analysis argued that the recent earnings beat does not resolve concerns about declining earnings, compressed restaurant-level margins and a still-demanding valuation. The outbreak creates an additional risk for a stock already facing pressure from rising operating costs. Chipotle Stock Falls Further as CDC Confirms Salmonella Outbreak

Chipotle Mexican Grill Trading Down 2.7%

CMG stock opened at $32.78 on Friday. The firm has a market capitalization of $41.48 billion, a PE ratio of 30.08, a PEG ratio of 2.09 and a beta of 0.94. Chipotle Mexican Grill, Inc. has a 1-year low of $28.03 and a 1-year high of $44.27. The business's 50 day simple moving average is $33.06 and its 200 day simple moving average is $34.42.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The restaurant operator reported $0.33 earnings per share for the quarter, beating analysts' consensus estimates 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 analysts' expectations of $3.33 billion. During the same quarter in the prior year, the business earned $0.33 EPS. The firm's revenue for the quarter was up 9.3% on a year-over-year basis. As a group, sell-side analysts predict that Chipotle Mexican Grill, Inc. will post 1.14 EPS for the current fiscal year.

Analysts Set New Price Targets

Several brokerages have commented on CMG. JPMorgan Chase & Co. upgraded shares of Chipotle Mexican Grill from a "neutral" rating to an "overweight" rating and dropped their target price for the stock from $38.00 to $35.00 in a report on Friday, June 5th. BTIG Research reissued a "buy" rating and set a $45.00 price objective on shares of Chipotle Mexican Grill in a research report on Wednesday. Piper Sandler cut their price objective on shares of Chipotle Mexican Grill from $42.00 to $39.00 and set an "overweight" rating on the stock in a research report on Thursday, July 30th. UBS Group reaffirmed a "buy" rating on shares of Chipotle Mexican Grill in a research report on Friday, July 31st. Finally, Raymond James Financial reiterated an "outperform" rating and set a $42.50 target price on shares of Chipotle Mexican Grill in a report on Thursday, July 30th. Twenty-four investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $44.16.

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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