Trump signs order raising Canada tariffs to 35% from 25%
Investing.com - Wells Fargo (NYSE:WFC) has lowered its price target on Chipotle Mexican Grill (NYSE:CMG) to $60.00 from $65.00 while maintaining an Overweight rating on the stock, citing slower-than-expected comparable sales performance. According to InvestingPro data, CMG currently trades at a P/E ratio of 45.9x and shows strong financial health metrics, with an overall health score rated as "GOOD."
The restaurant chain reported second-quarter comparable sales of -4%, missing expectations of -3%, with transactions declining 4.9% while average check increased 0.9%. Monthly performance showed improvement throughout the quarter, with April at approximately -8%, May at -5%, and June turning positive at +2%, according to Wells Fargo’s analysis. Despite the recent challenges, CMG maintains robust revenue growth of 12.6% over the last twelve months, with a five-year compound annual growth rate of 15%.
July sales were described as "choppy" but remain positive, with the company now expecting flat comparable sales for full-year 2025, down from previous low-single-digit growth guidance. Wells Fargo projects third-quarter comparable sales of +2% with July and August at +2.5% each and September at +1%.
Chipotle’s "Summer of Extras" loyalty program has attracted 5 million participants, which the company believes is effectively driving incremental frequency and loyalty enrollment, up 14% year-over-year. The chain has completed its vegetable slicer rollout and is implementing high-efficiency equipment packages over the next three years.
For the upcoming quarters, Chipotle plans to launch a rewards program targeting college students this fall, test a new catering platform in 60 units, and introduce three limited-time offerings in 2026 along with more regular menu innovation. The company maintained its unit growth guidance of 315-345 new restaurants for fiscal year 2025. With a market capitalization of $71.1 billion and analyst consensus remaining bullish, investors seeking deeper insights can access comprehensive analysis and 13 additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Chipotle Mexican Grill reported its second-quarter 2025 earnings, revealing a modest earnings per share (EPS) beat. The actual EPS was $0.33, slightly surpassing the forecast of $0.32. However, the company’s revenue came in at $3.1 billion, which was just below the expected $3.11 billion. In related developments, Citi has adjusted its price target for Chipotle from $68.00 to $62.00, while maintaining a Buy rating on the stock. This revision is attributed to what Citi describes as near-term bearish narratives, particularly concerning management’s expectations for improvements in the latter half of the year. These expectations are tied to anticipated better macroeconomic conditions and fewer disruptions from lower-income customers. These recent developments provide investors with a snapshot of Chipotle’s current financial landscape and market analyst perspectives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.