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Investing.com - BMO Capital has reiterated an Outperform rating on Chipotle Mexican Grill (NYSE:CMG) with a price target of $65.00, despite the company reporting mixed results. According to InvestingPro data, 13 analysts have recently revised their earnings estimates upward, with the stock currently trading near its 52-week low of $44.46.
The restaurant chain’s second-quarter sales trends came in modestly below BMO’s expectations, with Chipotle also tempering its comparable sales outlook for 2025.
Despite these challenges, Chipotle achieved consensus earnings per share of $0.33, benefiting from favorable cost management that offset the slower sales performance.
BMO noted that comparable sales trends showed improvement in June and July, with positive comparable sales and transaction growth, suggesting a potential turnaround in momentum.
The investment firm expressed confidence in continued comparable sales acceleration as the company faces easier year-over-year comparisons and adopts a more aggressive sales-driving approach, viewing the shares as an attractive opportunity at current valuation levels.
In other recent news, Chipotle Mexican Grill’s second-quarter 2025 earnings report revealed a 4% decline in same-store sales, falling short of analyst expectations. The company adjusted its full-year same-store sales guidance to flat, down from the previously anticipated low-single-digit growth. Analysts have responded to these results with varied assessments. RBC Capital lowered its price target for Chipotle to $58 from $65, citing weak second-quarter results and macroeconomic challenges. TD Cowen also adjusted its price target to $58, noting a challenging sales environment for 2025. Meanwhile, UBS maintained its Buy rating and a $65 price target, observing some sales improvement by the end of the quarter. Piper Sandler slightly increased its price target to $53, acknowledging the disappointing sales figures. Despite these challenges, Bernstein continues to rate Chipotle as Outperform. These developments indicate a mixed outlook for Chipotle amid ongoing economic pressures.
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