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Investing.com - KeyBanc has reduced its price target on Chipotle Mexican Grill (NYSE:CMG) to $45.00 from $52.00 while maintaining an Overweight rating on the stock. Chipotle currently trades at $32.16, down significantly from its 52-week high of $66.74. According to InvestingPro data, the stock appears undervalued based on its Fair Value assessment.
The price target adjustment follows Chipotle’s third-quarter 2025 results, which showed in-line earnings per share as lower-than-expected general and administrative expenses offset same-store sales growth and store-level margin shortfalls. The company reported diluted EPS of $1.13 over the last twelve months on revenue of $11.58 billion.
Chipotle has lowered its full-year same-store sales growth forecast to the negative low-single-digit range, implying a low-mid-single-digit decline in the fourth quarter. This represents a significant shift from the 8.57% revenue growth achieved over the last twelve months, contributing to the stock’s 34.06% year-to-date decline.
KeyBanc has reduced its 2025/2026 EPS estimates to $1.17/$1.23 to reflect the brand’s current challenges, with the new price target equating to approximately 37 times the firm’s 2026 EPS projection. InvestingPro data shows Chipotle currently trades at a P/E ratio of 35.53, with analyst consensus remaining bullish at 1.58 (Buy).
Despite these adjustments, KeyBanc maintains its Overweight rating, expressing confidence that Chipotle’s strong value proposition and limited-time offer strategy will yield improvement. InvestingPro rates Chipotle’s overall financial health as "GOOD" with a score of 2.87, supporting the company’s ability to navigate current headwinds. For comprehensive analysis and 12 additional ProTips on CMG, explore the Pro Research Report available on InvestingPro.
In other recent news, Chipotle Mexican Grill has seen several financial analysts adjust their price targets following its third-quarter results. The company reported a same-store sales growth of 0.3%, which fell short of the consensus expectation of 1.0%. This has led to a reduction in full-year guidance for the third consecutive time. Bernstein SocGen Group lowered its price target to $40, citing a weak outlook, while maintaining an Outperform rating. Raymond James also adjusted its target to $40, pointing to weaker sales trends and rising commodity inflation pressures. Stifel reduced its price target to $50, attributing the change to macroeconomic pressures affecting consumer spending. Mizuho lowered its target to $34 due to an underwhelming third-quarter performance and a lower-than-expected sales growth outlook for the fourth quarter. Goldman Sachs set a new target of $45, emphasizing inflation concerns and their impact on Chipotle’s key consumer segments.
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