Demystifying Chipotle Mexican Grill: Insights From 24 Analyst Reviews

In the last three months, 24 analysts have published ratings on Chipotle Mexican Grill CMG, offering a diverse range of perspectives from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 5 10 9 0 0
Last 30D 0 1 1 0 0
1M Ago 0 3 1 0 0
2M Ago 1 2 1 0 0
3M Ago 4 4 6 0 0

Analysts have recently evaluated Chipotle Mexican Grill and provided 12-month price targets. The average target is $67.17, accompanied by a high estimate of $75.00 and a low estimate of $56.00. This current average reflects an increase of 4.89% from the previous average price target of $64.04.

price target chart

Deciphering Analyst Ratings: An In-Depth Analysis

The analysis of recent analyst actions sheds light on the perception of Chipotle Mexican Grill by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Jeffrey Bernstein Barclays Raises Equal-Weight $63.00 $60.00
Brian Bittner Oppenheimer Raises Outperform $69.00 $65.00
Logan Reich RBC Capital Raises Outperform $75.00 $70.00
Andy Barish Jefferies Raises Hold $62.00 $56.00
Brian Vaccaro Raymond James Raises Outperform $72.00 $66.00
Zachary Fadem Wells Fargo Raises Overweight $75.00 $67.00
David Palmer Evercore ISI Group Raises Outperform $72.00 $70.00
Jake Bartlett Truist Securities Raises Buy $74.00 $72.00
Logan Reich RBC Capital Maintains Outperform $70.00 $70.00
Jim Salera Stephens & Co. Maintains Equal-Weight $65.00 $65.00
Nick Setyan Wedbush Maintains Outperform $69.00 $69.00
Andrew Charles TD Cowen Raises Buy $68.00 $65.00
Jon Tower Citigroup Lowers Buy $70.00 $71.00
Alton Stump Loop Capital Raises Hold $58.00 $53.00
Jim Salera Stephens & Co. Lowers Equal-Weight $65.00 $66.00
Brian Mullan Piper Sandler Raises Neutral $60.00 $59.00
Jake Bartlett Truist Securities Raises Buy $72.00 $71.00
Zachary Fadem Wells Fargo Raises Overweight $67.00 $66.00
Jeffrey Bernstein Barclays Raises Equal-Weight $60.00 $55.00
Andrew Strelzik BMO Capital Raises Market Perform $56.00 $55.00
David Tarantino Baird Raises Outperform $70.00 $62.00
David Palmer Evercore ISI Group Raises Outperform $70.00 $59.00
Jake Bartlett Truist Securities Raises Buy $71.00 $69.00
Brian Mullan Piper Sandler Raises Neutral $59.00 $56.00

Key Insights:

  • Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Chipotle Mexican Grill. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Chipotle Mexican Grill compared to the broader market.
  • Price Targets: Analysts predict movements in price targets, offering estimates for Chipotle Mexican Grill's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Chipotle Mexican Grill's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Chipotle Mexican Grill analyst ratings.

Discovering Chipotle Mexican Grill: A Closer Look

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 almost exclusively company-owned, with just two license stores opearted through a master franchise relationship with Alshaya Group in the Middle East. It had a footprint of nearly 3,440 stores at the end of 2023, heavily indexed to the United States, although it maintains a small presence in Canada, the UK, 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.

Chipotle Mexican Grill: Delving into Financials

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Chipotle Mexican Grill's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 13.01%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 13.87%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Chipotle Mexican Grill's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 10.58%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Chipotle Mexican Grill's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 4.32%, the company showcases efficient use of assets and strong financial health.

Debt Management: Chipotle Mexican Grill's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.24.

How Are Analyst Ratings Determined?

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.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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

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