Chipotle Mexican Grill Inc Stock Forecast:
Based on 15 analysts’ forecasts for Chipotle Mexican Grill Inc‘s stock, the price target is $1,845.31 over the next year. The average analyst rating for the company is “Strong Buy.” However, Stock Target Advisor‘s analysis is “Slightly Bullish” based on 9 positive and 4 negative indicators. Chipotle’s stock was last at $1,722.86, and has increased by 4.65% in the past week, 22.88% in the past month, and 18.58% in the past year.
Chipotle News:
Chipotle Mexican Grill (CMG:NYE) recently released its quarterly results and missed expectations, causing shares to fall by over 5% in after-hours trading. The company reported a revenue of $2.2 billion, which was lower than expected, and an adjusted earnings per share of $8.29, compared to the expected $8.91 per share. Despite this, same-store sales increased by 5.6%, driven by the opening of new locations.
In the fourth quarter of 2022, Chipotle opened 100 new restaurants, with 90 of them featuring its drive-thru concept, the Chipotlane. These new formats have been successful in increasing new restaurant sales, margins, and returns. In-restaurant sales also increased by 17.5% in the fourth quarter. However, the company’s operating margin was lower than expected, coming in at 13.6% compared to the consensus estimate of 14.7%. This was partially due to a decrease in foot traffic of 10.2% compared to 2021.
For the full fiscal year, Chipotle’s revenue increased by 14.4% to $8.6 billion and same-store sales increased by 8.0%. The company’s operating margin was up by 13.4%, and restaurant level operating margin was up by 23.9%.
In conclusion, while Chipotle’s quarterly results missed expectations, the company’s overall performance for the full fiscal year was strong, with increases in revenue and same-store sales. The company’s new drive-thru concept, the Chipotlane, has been successful in increasing new restaurant sales, margins, and returns.
Analysts Coverage Change (CMG:NYE):
- Credit Suisse Group maintains an Outperform rating, and raises price target to USD 2050 from USD 1950
- Raymond James maintains and Outperform rating, and raises the price target to USD 1900 from USD 1750
- Barclays maintains an Equal-Weight rating, and raises the price target to USD 1550 from USD 1450
- KeyBanc Capital Markets maintains an Overweight rating, and lowers the price target to USD 1780 from USD 1800
- BMO Capital Markets maintains a Market Perform rating, and raises the price target to USD 1800 from USD 1600
- Wells Fargo & Company maintains an Overweight rating, and raises the price target to USD 1900 from USD 1800
- Wedbush Securities maintains an Outperform rating, and raises the price target to USD 2080 from USD 1800
- Citigroup maintains a Buy rating, and raises the price target to USD 2084 from USD 1986
- Robert W. Baird & Co. maintains an Outperform rating, and raises the price target to USD 1900 from USD 1800
- Cowen maintains an Outperform rating, and raises the price target to USD 2050 from USD 1950
Positive Fundamentals:
Chipotle Mexican Grill Inc stock is a highly desirable investment option, based on its superior financial performance compared to its peers in the sector. The company has a high market capitalization, making it one of the largest entities in its sector and a stable investment option. It has also shown superior risk-adjusted returns over the past 12 months, and is in the top quartile for return on equity, capital utilization, and return on assets. Additionally, Chipotle has reported positive cash and free cash flow in the last four quarters, and has shown top quartile growth in earnings and revenue over the last five years.
Negative Fundamentals:
The Chipotle Mexican Grill Inc. stock has received criticism for being overpriced in various financial metrics when compared to its peers in the same sector. This means that the stock is trading at a higher price relative to its earnings, book value, cash flow, and free cash flow when compared to the median of its peers. As a result, potential buyers are advised to proceed with caution when considering purchasing the stock, as it may be deemed too expensive in comparison to its financial performance and stability.
FA Score (Fundamental Analysis):
The fundamental analysis of Chipotle Mexican Grill is “Slightly Bullish” with a FA score of 6.9 out of 10, where 0 is very bearish and 10 is very bullish.
