Chipotle Mexican Grill’s (CMG) Buy Rating Reiterated at TD Cowen

TD Cowen restated their buy rating on shares of Chipotle Mexican Grill (NYSE:CMG) in a report published on Thursday,Benzinga reports. The brokerage currently has a $44.00 price objective on the restaurant operator’s stock.

A number of other research analysts have also recently commented on the company. Weiss Ratings cut Chipotle Mexican Grill from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, July 24th. Piper Sandler cut their price objective on shares of Chipotle Mexican Grill from $44.00 to $42.00 and set an “overweight” rating for the company in a research report on Thursday, April 30th. Evercore reiterated an “outperform” rating and set a $47.00 price objective on shares of Chipotle Mexican Grill in a research note on Thursday. Guggenheim decreased their target price on shares of Chipotle Mexican Grill from $36.00 to $35.00 and set a “neutral” rating on the stock in a report on Friday, May 1st. Finally, Mizuho raised their target price on shares of Chipotle Mexican Grill from $40.00 to $41.00 and gave the company an “outperform” rating in a report on Monday, July 13th. 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 stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $43.98.

Chipotle Mexican Grill Price Performance

Chipotle Mexican Grill stock opened at $37.31 on Thursday. The firm 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. The stock’s fifty day moving average price is $32.85 and its two-hundred day moving average price is $34.62. Chipotle Mexican Grill has a one year low of $28.03 and a one year high of $44.27.

Chipotle Mexican Grill (NYSE:CMG) last released its 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. The firm had revenue of $3.35 billion during the quarter, compared to the consensus estimate of $3.33 billion. Chipotle Mexican Grill had a return on equity of 54.65% and a net margin of 11.43%.The company’s revenue was up 9.3% compared to the same quarter last year. During the same period in the prior year, the company posted $0.33 EPS. Sell-side analysts expect that Chipotle Mexican Grill will post 1.14 earnings per share for the current fiscal year.

Institutional Trading of Chipotle Mexican Grill

Several institutional investors and hedge funds have recently modified their holdings of the business. Wealth Watch Advisors INC acquired a new stake in shares of Chipotle Mexican Grill in the 3rd quarter valued at approximately $25,000. MV Capital Management Inc. acquired a new stake in Chipotle Mexican Grill in the fourth quarter valued at approximately $26,000. Osbon Capital Management LLC acquired a new stake in Chipotle Mexican Grill in the fourth quarter valued at approximately $28,000. Merkkuri Wealth Advisors LLC acquired a new stake in Chipotle Mexican Grill in the first quarter valued at approximately $28,000. Finally, Rule One Partners LLC bought a new stake in shares of Chipotle Mexican Grill during the first quarter worth $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: 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.