Chipotle Mexican Grill (NYSE:CMG) Earns Buy Rating from BTIG Research

Chipotle Mexican Grill (NYSE:CMG)‘s stock had its “buy” rating reaffirmed by equities research analysts at BTIG Research in a research report issued to clients and investors on Thursday,Benzinga reports. They currently have a $45.00 price target on the restaurant operator’s stock. BTIG Research’s price target would indicate a potential upside of 20.61% from the company’s previous close.

Several other analysts also recently weighed in on CMG. Citigroup decreased their price objective on Chipotle Mexican Grill from $46.00 to $45.00 and set a “buy” rating for the company in a report on Monday, July 13th. Piper Sandler dropped 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 report on Thursday, April 30th. Royal Bank Of Canada reissued an “outperform” rating and set a $45.00 target price on shares of Chipotle Mexican Grill in a research report on Thursday, April 30th. Weiss Ratings lowered shares of Chipotle Mexican Grill from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, July 24th. Finally, Morgan Stanley set a $37.00 price target on shares of Chipotle Mexican Grill and gave the stock an “equal weight” rating in a research report on Wednesday, June 3rd. Twenty-four analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average 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 Thursday. The stock’s fifty day moving average is $32.85 and its two-hundred day moving average is $34.62. The company has a market capitalization of $47.86 billion, a P/E ratio of 34.23, a PEG ratio of 2.49 and a beta of 0.97. Chipotle Mexican Grill has a 52 week low of $28.03 and a 52 week high of $44.27.

Chipotle Mexican Grill (NYSE:CMG) last issued its earnings results on Wednesday, July 29th. The restaurant operator reported $0.33 earnings per share for the quarter, topping 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 during the quarter, compared to analysts’ expectations of $3.33 billion. During the same period in the prior year, the business earned $0.33 EPS. The business’s revenue for the quarter was up 9.3% compared to the same quarter last year. Equities analysts anticipate that Chipotle Mexican Grill will post 1.14 earnings per share for the current year.

Institutional Investors Weigh In On Chipotle Mexican Grill

A number of institutional investors have recently added to or reduced their stakes in the stock. Norges Bank purchased a new position in Chipotle Mexican Grill in the fourth quarter valued at about $711,837,000. Vanguard Group Inc. boosted its holdings in shares of Chipotle Mexican Grill by 14.8% in 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 buying an additional 18,660,882 shares in the last quarter. Capital World Investors boosted its holdings in shares of Chipotle Mexican Grill by 15.8% in the 4th 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 in the last quarter. Clearbridge Investments LLC grew its position in shares of Chipotle Mexican Grill by 206.4% in the 4th 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 during the last quarter. Finally, Price T Rowe Associates Inc. MD grew its position in shares of Chipotle Mexican Grill by 18.8% in the 4th 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 during the last quarter. Institutional investors own 91.30% of the company’s stock.

Key Stories Impacting Chipotle Mexican Grill

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 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.