Are Wall Street Analysts Predicting Chipotle Mexican Grill Stock Will Climb or Sink?
/Chipotle%20Mexican%20Grill%20lunch%20by-%20dennizn%20via%20Shutterstock.jpg)
Valued at a market cap of $68.7 billion, Chipotle Mexican Grill, Inc. (CMG) is a leading quick-casual restaurant chain known for its fresh Mexican-inspired cuisine. With a commitment to responsibly sourced ingredients and a streamlined menu, the company operates locations across the U.S. and internationally.
Shares of the Newport Beach, California-based company have lagged behind the broader market over the past 52 weeks. CMG has dropped 19.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 11.6%. In addition, shares of Chipotle Mexican Grill are down 15.4% on a YTD basis, lagging behind SPX’s marginal increase.
Focusing more closely, the Mexican food chain company has also underperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 23.5% return over the past 52 weeks.
Despite reporting weaker-than-expected Q1 2025 revenue of $2.9 billion on Apr. 23, Chipotle shares rose 1.6% the next day due to its strong earnings beat, with adjusted EPS of $0.29 surpassing the estimate and rising 7.4% year-over-year. Investors were also encouraged by the company’s 57 new restaurant openings, including international expansion and Chipotlanes, and a 7.5% increase in adjusted net income to $396.8 million, exceeding expectations.
For the current fiscal year, ending in December 2025, analysts expect CMG’s adjusted EPS to grow 8% year-over-year to $1.21. The company's earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 30 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 19 “Strong Buy” ratings, three “Moderate Buys,” and eight “Holds.”
This configuration is slightly less bullish than three months ago, with 20 “Strong Buy” ratings on the stock.
On Apr. 14, RBC Capital cut Chipotle’s price target to $65 but kept an “Outperform” rating, noting a slight decline in Chipotle Honey Chicken’s traffic impact from 75% in March to 68% in April.
As of writing, CMG is trading below the mean price target of $58.77. The Street-high price target of $70 implies a potential upside of 37.3% from the current price levels.
On the date of publication, Sohini Mondal 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.