Chipotle Mexican Grill (NYSE:CMG) Cut to “Hold” at TD Cowen

TD Cowen downgraded shares of Chipotle Mexican Grill (NYSE:CMG) from a buy rating to a hold rating in a research note issued to investors on Wednesday, MarketBeat Ratings reports. They currently have $32.00 price objective on the restaurant operator’s stock, down from their prior price objective of $44.00.

A number of other brokerages have also commented on CMG. Sanford C. Bernstein reissued an “outperform” rating and set a $50.00 price objective (up from $40.00) on shares of Chipotle Mexican Grill in a report on Friday, July 31st. JPMorgan Chase & Co. dropped their target price on shares of Chipotle Mexican Grill from $40.00 to $37.00 and set an “overweight” rating for the company in a research note on Tuesday, September 29th. Morgan Stanley upped their target price on shares of Chipotle Mexican Grill from $39.00 to $40.00 and gave the stock an “equal weight” rating in a research report on Thursday, October 15th. Weiss Ratings upgraded shares of Chipotle Mexican Grill from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, August 7th. Finally, Guggenheim reissued a “neutral” rating and set a $36.00 price target (up from $35.00) on shares of Chipotle Mexican Grill in a research note on Friday, July 31st. Twenty-seven equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $43.56.

Chipotle Mexican Grill Stock Performance

Chipotle Mexican Grill stock opened at $27.51 on Wednesday. The firm has a market cap of $34.81 billion, a P/E ratio of 25.35, a P/E/G ratio of 1.71 and a beta of 0.96. The business’s fifty day moving average is $33.58 and its two-hundred day moving average is $33.33. Chipotle Mexican Grill has a 52 week low of $27.31 and a 52 week high of $42.19.

Chipotle Mexican Grill (NYSE:CMG) last announced its earnings results on Wednesday, July 29th. The restaurant operator reported $0.33 EPS for the quarter, topping the consensus estimate of $0.32 by $0.01. Chipotle Mexican Grill had a return on equity of 54.65% and a net margin of 11.43%. The company had revenue of $3.35 billion for the quarter, compared to analysts’ expectations of $3.33 billion. During the same quarter in the prior year, the business earned $0.33 earnings per share. The business’s revenue for the quarter was up 9.3% on a year-over-year basis. On average, equities research analysts predict that Chipotle Mexican Grill will post 1.14 earnings per share for the current year.

Insider Activity

In other news, insider Matthew R. Bush sold 2,675 shares of the company’s stock in a transaction on Friday, August 21st. The stock was sold at an average price of $35.75, for a total transaction of $95,631.25. Following the transaction, the insider owned 21,415 shares of the company’s stock, valued at $765,586.25. This represents a 11.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.45% of the stock is owned by company insiders.

Institutional Trading of Chipotle Mexican Grill

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CMG. Osbon Capital Management LLC bought a new position in shares of Chipotle Mexican Grill in the 2nd quarter valued at about $26,000. Meeder Asset Management Inc. acquired a new stake in shares of Chipotle Mexican Grill during the 2nd quarter worth approximately $27,000. Merkkuri Wealth Advisors LLC acquired a new stake in shares of Chipotle Mexican Grill during the 1st quarter worth approximately $28,000. Kelleher Financial Advisors bought a new stake in shares of Chipotle Mexican Grill during the second quarter worth approximately $28,000. Finally, Rule One Partners LLC bought a new stake in shares of Chipotle Mexican Grill during the first quarter worth approximately $32,000. 91.30% of the stock is currently owned by institutional investors and hedge funds.

More Chipotle Mexican Grill News

Here are the key news stories impacting Chipotle Mexican Grill this week:

• Positive Sentiment: Despite the recent weakness, several analysts still see significant upside. Mizuho lowered its target from $43 to $37 but retained an “outperform” rating, while Deutsche Bank maintained a “buy” rating after reducing its target from $51 to $45. Mizuho analyst rating
• Positive Sentiment: Chipotle is relying on menu innovation, digital initiatives, loyalty programs, marketing and pricing to support sales. Its scale and historically strong profitability remain longer-term investment positives. Chipotle Q3 earnings preview
• Neutral Sentiment: Chipotle is scheduled to report third-quarter earnings on October 28. Analysts are watching sales trends, restaurant traffic, digital performance and margins more closely than headline revenue and earnings estimates. Chipotle Q3 earnings expectations
• Negative Sentiment: TD Cowen downgraded CMG from “buy” to “hold” and cut its price target from $44 to $32, citing weak October data and slowing sales. The analyst now questions whether Chipotle can achieve the expected fourth-quarter improvement. Why Chipotle stock is trading lower
• Negative Sentiment: A former long-standing Chipotle bull moved to the sidelines after signs of a soft start to the fourth quarter, adding to concerns about weaker sales growth in 2027. Chipotle softening sales
• Negative Sentiment: Rising food, labor and operating expenses threaten margins, while recent price increases could further pressure customer traffic and demand. Chipotle price hikes
• Negative Sentiment: The combination of multiple target cuts, fresh downgrades and unusually heavy options activity is amplifying near-term volatility ahead of earnings. Chipotle stock dips

About Chipotle Mexican Grill

Chipotle Mexican Grill, Inc (NYSE: CMG) operates a chain of fast-casual restaurants focused on Mexican-inspired food. Its menu includes burritos, burrito bowls, tacos, quesadillas and salads, with options such as chicken, steak, barbacoa, carnitas, sofritas and vegetables. The company emphasizes preparing food in its restaurants from ingredients it describes as responsibly sourced, including meats raised with attention to animal welfare and produce from selected suppliers.

Founded by Steve Ells in 1993, Chipotle opened its first restaurant in Denver, Colorado.