Chipotle Mexican Grill (NYSE:CMG) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Chipotle Mexican Grill (NYSE:CMG) had its price objective boosted by stock analysts at Morgan Stanley from $37.00 to $39.00 in a research report issued on Thursday,Benzinga reports. The firm presently has an “equal weight” rating on the restaurant operator’s stock. Morgan Stanley’s target price indicates a potential upside of 13.63% from the company’s previous close.

A number of other brokerages have also recently issued reports on CMG. Barclays dropped their price objective on Chipotle Mexican Grill from $40.00 to $38.00 and set an “equal weight” rating on the stock in a research note on Thursday, April 30th. Argus upgraded Chipotle Mexican Grill from a “hold” rating to a “buy” rating and set a $40.00 target price on the stock in a research note on Tuesday, May 5th. Raymond James Financial reaffirmed an “outperform” rating on shares of Chipotle Mexican Grill in a report on Thursday. Mizuho upped their price objective on Chipotle Mexican Grill from $40.00 to $41.00 and gave the stock an “outperform” rating in a research report on Monday, July 13th. Finally, Zacks Research upgraded Chipotle Mexican Grill from a “strong sell” rating to a “hold” rating in a report on Friday, April 17th. Twenty-three investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Chipotle Mexican Grill currently has an average rating of “Moderate Buy” and an average price target of $44.04.

Chipotle Mexican Grill Price Performance

Shares of CMG stock opened at $34.32 on Thursday. The stock has a 50-day moving average of $32.65 and a 200-day moving average of $34.61. The stock has a market cap of $44.02 billion, a PE ratio of 31.49, a price-to-earnings-growth ratio of 2.19 and a beta of 0.97. Chipotle Mexican Grill has a one year low of $28.03 and a one year high of $44.54.

Chipotle Mexican Grill (NYSE:CMG) last announced its earnings results on Wednesday, July 29th. The restaurant operator reported $0.33 EPS for the quarter, topping the consensus estimate of $0.32 by $0.01. The firm had revenue of $3.35 billion for the quarter, compared to the consensus estimate of $3.33 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 9.3% on a year-over-year basis. During the same period last year, the company posted $0.33 EPS. As a group, research analysts anticipate that Chipotle Mexican Grill will post 1.13 earnings per share for the current year.

Institutional Investors Weigh In On Chipotle Mexican Grill

Several hedge funds and other institutional investors have recently modified their holdings of CMG. Vanguard Group Inc. boosted its stake in Chipotle Mexican Grill by 14.8% during 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 grew its position in 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 worth $3,762,457,000 after acquiring an additional 13,843,222 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its holdings 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 purchasing an additional 9,237,720 shares in the last quarter. Capital International Investors grew its position in Chipotle Mexican Grill by 17.7% during the fourth quarter. Capital International Investors now owns 45,294,212 shares of the restaurant operator’s stock valued at $1,675,895,000 after acquiring an additional 6,796,285 shares during the last quarter. Finally, Norges Bank bought a new position in shares of Chipotle Mexican Grill during the 4th quarter valued at $711,837,000. 91.30% of the stock is currently owned by institutional investors.

Chipotle Mexican Grill News Summary

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

• Positive Sentiment: Chipotle reported second-quarter revenue of $3.35 billion, up 9.3% year over year and slightly above estimates, while adjusted earnings of $0.33 per share exceeded the consensus forecast of $0.32. Chipotle raises annual sales forecast
• Positive Sentiment: Comparable restaurant sales increased 2.2%, with transactions improving for a second consecutive quarter. Value offerings, menu updates and Chipotle’s broader “Recipe for Growth” strategy appear to be helping attract customers in a competitive restaurant market. Chipotle raises full-year comparable sales guidance
• Positive Sentiment: Management raised its full-year comparable-sales forecast, signaling confidence that second-quarter momentum can continue. The company also opened 100 restaurants during the quarter, supporting longer-term unit and revenue growth. Chipotle Mexican Grill posts higher sales
• Neutral Sentiment: Chipotle said it was not involved in the reported cyclospora outbreak, limiting the potential for direct reputational or regulatory damage. However, management acknowledged that related fears affected customer traffic late in July. Chipotle stock rises after earnings
• Negative Sentiment: Investors still face risks from softer late-July traffic, value-conscious consumers and pressure from labor and operating costs. Commentary noting margin challenges could limit the benefit of the earnings and sales beats. Chipotle lifts its sales forecast

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.