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Investing.com - Truist Securities lowered its price target on Chipotle Mexican Grill (NYSE:CMG) to $45.00 from $53.00 on Thursday, while maintaining a Buy rating on the stock following the company’s third-quarter results. The new target aligns with broader analyst sentiment, as InvestingPro data shows 15 analysts have recently revised their earnings estimates downward for the upcoming period.
The fast-casual restaurant chain reported same-store sales that missed consensus expectations, though earnings per share were in line with analyst forecasts. Truist noted that macroeconomic pressures are weighing on Chipotle’s traffic, a situation compounded by strong year-ago comparisons. This challenging environment has contributed to CMG’s stock trading at $32.62, down 34% year-to-date and nearly 50% below its 52-week high of $66.74.
Despite the near-term challenges, Truist characterized the situation as "Near-Term Pain for Long-Term Gain" as Chipotle works to strengthen its value proposition. The company plans to reaccelerate traffic through limited menu pricing, value-oriented marketing, increased menu innovation, and improved operations. According to InvestingPro data, Chipotle remains profitable with strong fundamentals, including 8.57% revenue growth over the last twelve months and sufficient cash flows to cover interest payments.
Truist expects Chipotle’s strategy of pricing below inflation to significantly pressure margins in 2026. However, the firm believes these investments in consumer value will help fuel growth for many years to come.
The revised $45 price target represents a reduction of approximately 15% from Truist’s previous target of $53, reflecting adjusted expectations following Chipotle’s weaker guidance for upcoming quarters.
In other recent news, Chipotle Mexican Grill has been the subject of several analyst revisions following its third-quarter 2025 earnings report. The company reported in-line earnings per share of $0.29 for the quarter, with favorable general and administrative expenses and taxes balancing out margin pressure and slightly softer comparable sales. Despite maintaining an Outperform rating, BMO Capital lowered its price target to $55, citing these margin pressures. Similarly, RBC Capital adjusted its price target to $40, highlighting macroeconomic headwinds and a shift in consumer preferences toward home-cooked meals. KeyBanc also reduced its price target to $45, noting sales challenges and store-level margin shortfalls. Bernstein SocGen Group and Raymond James both lowered their price targets to $40, pointing to weak sales trends and a disappointing same-store sales growth of 0.3%, which fell short of consensus expectations. These developments reflect a challenging environment for Chipotle as it navigates ongoing economic pressures.
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