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With a market cap of $73.76 billion, Chipotle Mexican Grill, Inc. (CMG) is a fast-casual restaurant chain headquartered in Newport Beach, California. It is known for its focus on sustainably sourced ingredients and customizable menu options; Chipotle serves a broad customer base across the U.S. and internationally.
CMG has significantly outperformed the broader market over the last year. The stock has gained 41.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 28.1%. In 2024, the stock has gained 17.1%, compared to SPX's 18.1% gains on a YTD basis.
Narrowing the focus, CMG also outperformed the AdvisorShares Restaurant ETF (EATZ). The exchange-traded fund has gained 13.9% on a YTD basis.
CMG reported its Q2 results on Jul. 24, with revenue and EPS of $2.97 billion and $0.34, which exceeded Wall Street forecasts of $2.94 billion and $0.31, respectively. Following the release of its results, the stock declined 1.5%.
For the current fiscal year, ending in December, analysts expect CMG’s EPS to grow 20% to $1.08 on a diluted basis. The company's earnings surprise history is impressive. It beat the consensus estimate in all four quarters.
Among the 30 analysts covering CMG stock, the consensus rating is a “Moderate Buy.” That’s based on 20 “Strong Buy” ratings, one “Moderate Buy,” and nine “Holds.”
This configuration is slightly more bullish than three months ago, with 18 analysts recommending a “Strong Buy.”
On Aug. 16, Analyst David Tarantino from Robert W. Baird maintained a “Buy” rating on Chipotle Mexican Grill, with a price target of $62, which indicates a 15.4% upside from the current levels.
The mean price target of $62.57 represents a 16.5% premium to CMG’s current price levels. The Street-high price target of $71 suggests an upside potential of 32.2%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
