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TD Cowen reiterated its buy rating and $57.00 price target on Chipotle Mexican Grill (NYSE:CMG) Wednesday, citing confidence in the company’s strategy despite current industry challenges. According to InvestingPro data, CMG currently trades at $52.02, with a market capitalization of $70.12 billion and maintains a "GREAT" financial health score.
The research firm maintained its same-store sales estimates of 0.6% for 2025 and 5.0% for 2026, compared to consensus estimates of 0.8% and 4.4%, respectively. TD Cowen believes Chipotle is implementing appropriate initiatives to reaccelerate near-term traffic and achieve $4 million sales volumes over the long term. The company has demonstrated strong execution with 12.57% revenue growth and a remarkable 46% return on equity in the last twelve months.
TD Cowen attributes Chipotle’s current sales softness to difficult macroeconomic conditions rather than execution problems. The firm ranks Chipotle as its "#3 pick" and favorite large-cap name in the restaurant sector. For deeper insights into CMG’s valuation and growth prospects, including 13 additional ProTips, check out the comprehensive research report available on InvestingPro.
Proprietary survey data from TD Cowen indicates Chipotle maintains a stable advantage in value perception compared to fast casual peers, suggesting brand-specific issues are not driving the current sales challenges.
New Chipotle locations continue to demonstrate consistent performance, with new store productivity remaining at approximately 80% of mature store levels, according to the research firm’s analysis.
In other recent news, Chipotle Mexican Grill has been the subject of several analyst reviews and company developments. Bernstein SocGen Group has increased its price target for Chipotle from $60 to $65, maintaining an Outperform rating. This decision follows a decline in Chipotle’s stock and its first negative same-store sales growth quarter since the e.Coli crisis, with Bernstein expressing confidence in the company’s pricing strategy and future recovery. Meanwhile, JPMorgan has adjusted its price target for Chipotle down to $54 from $58, retaining a Neutral rating, citing expectations for a rebound in comparable store sales by late 2025. Redburn-Atlantic also initiated coverage with a Neutral rating and a $55 price target, noting Chipotle’s strong market position but suggesting the stock is fairly valued. Stephens maintains an Equal Weight rating with a $49 price target, highlighting Chipotle’s new Adobo Ranch dip as a strategic product innovation aimed at younger consumers.
In addition to analyst assessments, Chipotle announced the appointment of Jason Kidd as its new Chief Operating Officer, effective May 19. Kidd brings extensive experience from his previous roles at Taco Bell and other companies, and his appointment is part of a broader leadership transition. Jack Hartung, the current President and Chief Strategy Officer, will step down to serve as a senior advisor, with Curt Garner and Chris Brandt taking on expanded roles. These leadership changes are intended to support Chipotle’s strategic goals and operational excellence.
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