Demystifying Chipotle Mexican Grill: Insights From 18 Analyst Reviews

In the preceding three months, 18 analysts have released ratings for Chipotle Mexican Grill CMG, presenting a wide array of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $66.61, a high estimate of $75.00, and a low estimate of $59.00. Highlighting a 0.49% decrease, the current average has fallen from the previous average price target of $66.94.

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: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Chipotle Mexican Grill. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Chipotle Mexican Grill compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Chipotle Mexican Grill's stock. This analysis reveals shifts in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Chipotle Mexican Grill's market standing. Stay informed and make data-driven decisions with 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 $11.3 billion in 2024. The Mexican concept is almost exclusively company-owned, with just three license stores operated through a master franchise relationship with Alshaya Group in the Middle East. It had a footprint of 3,726 stores at the end of 2024, 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.

Financial Milestones: Chipotle Mexican Grill's Journey

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Positive Revenue Trend: Examining Chipotle Mexican Grill's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 13.07% as of 31 December, 2024, showcasing a substantial increase in 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: Chipotle Mexican Grill's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 11.66% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Chipotle Mexican Grill's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 9.13%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 3.64%, the company showcases effective utilization of assets.

Debt Management: With a below-average debt-to-equity ratio of 1.24, Chipotle Mexican Grill adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Core of Analyst Ratings: What Every Investor Should Know

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 also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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