Chipotle Mexican Grill (NYSE:CMG) received an upgraded price target of $50.00 from Truist Financial, reflecting a notable increase from the previous target of $45.00. This revision, announced in a research note on October 30, 2023, indicates a potential upside of approximately 26.6% based on the current stock price. Truist Financial maintains a “buy” rating on the stock, suggesting confidence in the restaurant operator’s future performance.
Several other research firms have also weighed in on Chipotle’s stock. Zacks Research upgraded their rating from “strong sell” to “hold” on December 29, 2023. Conversely, Royal Bank of Canada reduced their target price from $58.00 to $40.00, while maintaining an “outperform” rating. Similarly, Morgan Stanley lowered their price target from $59.00 to $50.00 with an “overweight” rating. KeyCorp set their price objective at $45.00, down from $52.00, and also rated the stock as “overweight.” BTIG Research adjusted its target from $57.00 to $45.00 while retaining a “buy” rating.
Analyst sentiment around Chipotle is largely positive, with two analysts assigning a “Strong Buy” rating, twenty-two giving a “Buy” rating, and twelve issuing a “Hold” rating. According to data from MarketBeat, the consensus rating for Chipotle Mexican Grill stands at “Moderate Buy,” with an average target price of $49.93.
Recent Financial Performance
Chipotle Mexican Grill released its quarterly earnings data on October 29, 2023, reporting earnings per share (EPS) of $0.29, aligning with market expectations. The company posted revenue of $3 billion for the quarter, slightly below the consensus estimate of $3.06 billion. Despite this, Chipotle demonstrated a strong return on equity of 45.39% and a net margin of 13.04%. Year-over-year, the company’s revenue increased by 7.5%, compared to the same quarter last year when it earned $0.27 per share. Analysts project that Chipotle will achieve $1.29 EPS for the current fiscal year.
Institutional Investor Activity
Recent shifts among institutional investors further underscore interest in Chipotle’s stock. Capital World Investors significantly increased its stake by 122.7% during the third quarter, now holding 87,844,788 shares valued at approximately $3.44 billion. Norges Bank entered a new position in Chipotle valued at $1.001 billion in the second quarter.
Additionally, Capital International Investors raised its position by 42.4%, now owning 38,497,927 shares worth about $1.51 billion. Sustainable Growth Advisers LP also acquired a new stake valued at $597 million. BlueSpruce Investments LP saw a dramatic increase in its holdings, with a boost of 24,760.7% in the second quarter, bringing its total shares to 3,930,732 worth approximately $220.71 million. Notably, institutional investors now hold 91.3% of Chipotle’s stock.
Chipotle Mexican Grill, founded in 1993 by Steve Ells, is renowned for its Mexican-inspired cuisine, offering a selection of burritos, bowls, tacos, and salads. The company emphasizes fresh, customizable meals made from high-quality ingredients and operates mainly through company-owned outlets, providing various service options including dine-in, takeout, catering, and delivery. Headquartered in Newport Beach, California, Chipotle’s roots trace back to Denver, Colorado.
As market dynamics evolve, Chipotle’s performance and strategic decisions will likely continue to attract attention from investors and analysts alike.
