Key Takeaways From Chipotle Mexican Grill Analyst Ratings

Ratings for Chipotle Mexican Grill CMG were provided by 24 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $2490.67, a high estimate of $3016.00, and a low estimate of $9.00. Surpassing the previous average price target of $2230.67, the current average has increased by 11.66%.

Decoding Analyst Ratings: A Detailed Look

In examining recent analyst actions, we gain insights into how financial experts perceive Chipotle Mexican Grill. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Chipotle Mexican Grill. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Chipotle Mexican Grill compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Chipotle Mexican Grill's stock. This examination reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Chipotle Mexican Grill's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Chipotle Mexican Grill analyst ratings.

All You Need to Know About Chipotle Mexican Grill

Chipotle Mexican Grill is the largest fast-casual chain restaurant in the United States, with systemwide sales of $9.9 billion in 2023. The Mexican concept is predominately company-owned (it recently inked a development agreement with Alshaya Group in the Middle East), with a footprint of nearly 3,440 stores at the end of 2023, heavily indexed to the United States, although the firm maintains a small presence in Canada, the U.K., France, and Germany. Chipotle sells burritos, burrito bowls, tacos, quesadillas, and beverages, with a selling proposition built around competitive prices, high-quality food sourcing, speed of service, and convenience. The company generates its revenue entirely from restaurant sales and delivery fees.

Financial Insights: Chipotle Mexican Grill

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Chipotle Mexican Grill's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 15.4%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Chipotle Mexican Grill's net margin is impressive, surpassing industry averages. With a net margin of 11.21%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Chipotle Mexican Grill's ROE excels beyond industry benchmarks, reaching 9.48%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Chipotle Mexican Grill's ROA excels beyond industry benchmarks, reaching 3.54%. This signifies efficient management of assets and strong financial health.

Debt Management: Chipotle Mexican Grill's debt-to-equity ratio is below the industry average. With a ratio of 1.32, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Significance of Analyst Ratings Explained

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.