Chipotle Mexican Grill, Inc. (CMG) Upgraded by Zacks Investment Research to Hold
Zacks Investment Research upgraded shares of Chipotle Mexican Grill, Inc. (NYSE:CMG) from a strong sell rating to a hold rating in a research report released on Thursday.
According to Zacks, “Chipotle’s third-quarter adjusted earnings of $1.33 per share lagged the Zacks Consensus Estimate by 14.7% but rose notably on a year-over-year basis. Revenues increased 8.8% to $1.128 billion and were almost in line with the consensus mark. Comps grew a mere 1% in the quarter despite the highly-anticipated nationwide roll-out of queso cheese dip. We note that 2017 has been a challenging year for Chipotle. Though initially sales somewhat recovered from the massive food safety scandal, which surfaced toward 2015-end, a fresh round of food-safety scare this summer once again raised alarming questions. In fact, Chipotle shares have underperformed the industry year to date. Even so, continued focus on food safety, simplifying restaurant operations, new menu items, enhancing digital orders and brand marketing is likely to draw customers. Still, higher costs are likely to impact margins, while a soft industry backdrop might limit revenue growth.”
CMG has been the topic of a number of other research reports. SunTrust Banks, Inc. reaffirmed a buy rating and set a $505.00 price target (down previously from $520.00) on shares of Chipotle Mexican Grill in a report on Wednesday, July 26th. Wedbush downgraded shares of Chipotle Mexican Grill from an outperform rating to a market perform rating and dropped their price target for the company from $470.00 to $370.00 in a report on Friday, July 21st. Wells Fargo & Company reaffirmed a hold rating on shares of Chipotle Mexican Grill in a report on Friday, October 13th. Cowen and Company downgraded shares of Chipotle Mexican Grill from a market perform rating to an underperform rating and dropped their price target for the company from $370.00 to $250.00 in a report on Friday, September 8th. Finally, Mizuho reaffirmed a buy rating and set a $450.00 price target on shares of Chipotle Mexican Grill in a report on Saturday, September 23rd. Seven research analysts have rated the stock with a sell rating, twenty-three have given a hold rating, nine have assigned a buy rating and one has issued a strong buy rating to the stock. The company currently has an average rating of Hold and a consensus target price of $356.06.
Shares of Chipotle Mexican Grill (NYSE:CMG) opened at $289.84 on Thursday. The firm has a market cap of $8,183.03, a PE ratio of 49.97, a price-to-earnings-growth ratio of 2.50 and a beta of 0.44. Chipotle Mexican Grill has a 12 month low of $263.00 and a 12 month high of $499.00.
Chipotle Mexican Grill (NYSE:CMG) last released its quarterly earnings data on Tuesday, October 24th. The restaurant operator reported $1.33 earnings per share for the quarter, missing analysts’ consensus estimates of $2.24 by ($0.91). The firm had revenue of $1.13 billion for the quarter, compared to the consensus estimate of $1.14 billion. Chipotle Mexican Grill had a net margin of 3.37% and a return on equity of 11.80%. The firm’s revenue for the quarter was up 8.8% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.56 earnings per share. equities analysts forecast that Chipotle Mexican Grill will post 6.63 EPS for the current year.
A number of hedge funds have recently bought and sold shares of CMG. Korea Investment CORP increased its position in Chipotle Mexican Grill by 140.2% during the second quarter. Korea Investment CORP now owns 269 shares of the restaurant operator’s stock valued at $112,000 after acquiring an additional 157 shares during the last quarter. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA increased its position in Chipotle Mexican Grill by 15.7% during the second quarter. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA now owns 406 shares of the restaurant operator’s stock valued at $140,000 after acquiring an additional 55 shares during the last quarter. First Interstate Bank increased its position in Chipotle Mexican Grill by 111.1% during the third quarter. First Interstate Bank now owns 475 shares of the restaurant operator’s stock valued at $146,000 after acquiring an additional 250 shares during the last quarter. Mercer Capital Advisers Inc. bought a new position in Chipotle Mexican Grill during the third quarter valued at $183,000. Finally, Harbour Capital Advisors LLC increased its position in Chipotle Mexican Grill by 30,455.0% during the second quarter. Harbour Capital Advisors LLC now owns 82,804 shares of the restaurant operator’s stock valued at $199,000 after acquiring an additional 82,533 shares during the last quarter. Institutional investors and hedge funds own 88.58% of the company’s stock.
About Chipotle Mexican Grill
Chipotle Mexican Grill, Inc (Chipotle), together with its subsidiaries, operates Chipotle Mexican Grill restaurants. The Company’s Chipotle Mexican Grill restaurants serve a menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads. As of December 31, 2016, the Company managed its operations and restaurants based on 11 regions.
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