Chipotle stock price target cut to $60 by BTIG

On Thursday, BTIG analysts adjusted their outlook on Chipotle Mexican Grill (NYSE:CMG) shares, reducing the price target to $60 from the previous $67, while maintaining a Buy rating on the stock. According to InvestingPro data, the stock currently trades at a P/E ratio of 43.29, with 18 analysts recently revising their earnings expectations downward for the upcoming period. The revision follows Chipotle’s recent earnings report, which revealed the company’s weakest quarter in almost five years. Despite these challenges, InvestingPro analysis shows the company maintains strong financial health with a 14.61% revenue growth and robust liquidity, as current assets exceed short-term obligations. BTIG pointed to tighter consumer spending as the main factor, with customers opting for less expensive quick-service options or dining out less frequently overall.

The company’s first-quarter performance fell short of its own expectations, and the shortfall was more significant than BTIG had projected. Despite this, the analysts noted some positive aspects, such as the company’s ability to offset sales weakness with other profit and loss items like food costs and general and administrative expenses. Additionally, BTIG mentioned potential upcoming marketing efforts, stating, "We are encouraged to hear that management might introduce another side-item limited-time offer (LTO) this year, and support it with incremental advertising this summer."

BTIG is also monitoring Chipotle’s unit growth closely, expressing concern over the impact of tariffs and trade wars on equipment supply. However, Chipotle’s management has indicated they have not observed any equipment shortages at this time. The analysts emphasized that despite the lowered sales trends and earnings revisions, their Buy rating remains unchanged due to the overall positive outlook for the company. For deeper insights into Chipotle’s financial health and growth prospects, including 12 additional exclusive ProTips and comprehensive valuation analysis, investors can access the detailed Pro Research Report available on InvestingPro.

In other recent news, Chipotle Mexican Grill reported its first-quarter earnings for 2025, with earnings per share meeting expectations at $0.29. However, the company fell short on revenue, reporting $2.88 billion against a forecasted $2.98 billion. Analysts from firms including Goldman Sachs, Evercore ISI, and Raymond (NSE:RYMD) James have adjusted their price targets for Chipotle, reducing them to between $57 and $58, while maintaining positive ratings on the stock. The adjustments reflect concerns over declining customer traffic and a slowdown in same-store sales growth. Despite these challenges, analysts remain optimistic about Chipotle’s strategic initiatives, such as increased marketing efforts and new menu items like the Chipotle Honey Chicken. The company is also exploring growth opportunities in its catering services, which currently account for a small portion of sales. Looking ahead, Chipotle anticipates low single-digit comparable sales growth for the full year and plans to open 315-345 new restaurants, continuing its expansion efforts.

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