Truist Securities lowers Chipotle stock price target to $60 on SSS miss

Published 27/07/2025, 11:00
Truist Securities lowers Chipotle stock price target to $60 on SSS miss

Investing.com - Truist Securities has lowered its price target on Chipotle Mexican Grill (NYSE:CMG) to $60.00 from $64.00 while maintaining a Buy rating on the stock. According to InvestingPro data, analysts remain broadly positive on CMG, with 14 analysts recently revising their earnings estimates upward for the upcoming period.

The price target reduction follows Chipotle’s second-quarter 2025 results, which showed a same-store sales (SSS) miss alongside roughly in-line earnings per share. The company also lowered its SSS guidance for upcoming periods. Despite the guidance reduction, CMG maintains strong fundamentals with a current ratio of 1.65 and operates with moderate debt levels.

Truist Securities noted the approximately 13.7% pullback in Chipotle shares (compared to a 0.3% gain for the S&P) appears excessive, citing improved same-store sales and positive traffic trends observed in June and July.

The research firm highlighted several positive factors supporting its continued Buy rating, including expected strong marketing campaigns and limited-time offerings in the second half of 2025 and into 2026, ongoing throughput improvements, operating cost efficiencies, and accelerating development.

Truist Securities acknowledged that aggressive menu pricing between 2021 and 2024 has made Chipotle more sensitive to macroeconomic factors, but expects recent moderate pricing strategies and improved customer experience to drive a solid recovery in customer traffic.

In other recent news, Chipotle Mexican Grill reported its second-quarter earnings, revealing a decline in comparable sales by 4% and transactions down nearly 5%. Despite these challenges, the company managed to deliver earnings per share of $0.33, aligning with consensus estimates. KeyBanc lowered its price target for Chipotle to $58.00 from $60.00, citing concerns over sales growth, although it maintained an Overweight rating. Similarly, TD Cowen reduced its price target to $58.00 from $61.00, acknowledging a challenging sales environment ahead and adjusting its same-store sales growth guidance for 2025 to flat.

RBC Capital also lowered its price target to $58.00 from $65.00, maintaining an Outperform rating after Chipotle’s second-quarter results fell short of expectations. The firm noted that macroeconomic volatility and consumer sentiment were factors in the company’s underperformance. Meanwhile, BMO Capital reiterated an Outperform rating with a price target of $65.00, despite Chipotle’s tempered outlook for future sales. Stifel maintained a Buy rating with a $65.00 price target, describing the consumer environment as challenging. These developments highlight a mixed but cautious sentiment among analysts regarding Chipotle’s future performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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