Chipotle Mexican Grill Inc. (CMG) Cut to “Strong Sell” at Zacks Investment Research
Chipotle Mexican Grill Inc. (NYSE:CMG) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report issued on Tuesday.
According to Zacks, “Chipotle continues to suffer from the negative publicity surrounding the E. coli and norovirus outbreaks. Sales have taken a severe hit post the outbreak and the company has withdrawn the 2016 comps outlook due to volatile sales trends. Also, estimates have been going down ahead of Chipotle’s third quarter earnings release. Meanwhile, the company has mixed record of earnings surprises in recent quarters. However, Chipotle’s efforts to maintain its market position via expansion plans coupled with various sales and technology driven initiatives may boost results, going forward. Yet, margins are expected to remain under pressure due to higher labor expenses. Chipotle also intends to roll out a number of marketing and promotional activities to bring back customers to its stores. The costs associated with these will continue to impact profitability.”
CMG has been the subject of a number of other reports. Goldman Sachs Group Inc. decreased their price target on Chipotle Mexican Grill from $490.00 to $445.00 and set a “neutral” rating for the company in a research note on Tuesday, July 19th. Nomura reiterated a “neutral” rating and issued a $420.00 price target on shares of Chipotle Mexican Grill in a research note on Friday, June 3rd. Jefferies Group reiterated a “sell” rating on shares of Chipotle Mexican Grill in a research note on Friday, August 5th. Citigroup Inc. lifted their price target on Chipotle Mexican Grill from $488.00 to $517.00 and gave the stock a “buy” rating in a research note on Tuesday, September 13th. Finally, Vetr downgraded Chipotle Mexican Grill from a “strong-buy” rating to a “buy” rating and set a $449.21 price target for the company. in a research note on Tuesday, July 12th. Seven research analysts have rated the stock with a sell rating, nineteen have assigned a hold rating and fifteen have given a buy rating to the stock. The company currently has an average rating of “Hold” and an average target price of $481.78.
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Chipotle Mexican Grill (NYSE:CMG) opened at 402.76 on Tuesday. The stock has a market capitalization of $11.73 billion, a P/E ratio of 58.03 and a beta of 0.59. The company has a 50-day moving average price of $408.46 and a 200 day moving average price of $432.68. Chipotle Mexican Grill has a 1-year low of $384.77 and a 1-year high of $757.00.
Chipotle Mexican Grill (NYSE:CMG) last posted its quarterly earnings results on Thursday, July 21st. The company reported $0.87 EPS for the quarter, missing the Zacks’ consensus estimate of $0.93 by $0.06. The firm earned $998.40 million during the quarter, compared to analyst estimates of $1.06 billion. Chipotle Mexican Grill had a return on equity of 11.22% and a net margin of 5.24%. On average, equities analysts predict that Chipotle Mexican Grill will post $0.24 EPS for the current year.
Hedge funds have recently made changes to their positions in the stock. BlackRock Fund Advisors increased its stake in shares of Chipotle Mexican Grill by 1.7% in the first quarter. BlackRock Fund Advisors now owns 573,551 shares of the company’s stock valued at $270,125,000 after buying an additional 9,848 shares during the period. Legal & General Group Plc increased its stake in shares of Chipotle Mexican Grill by 2.2% in the first quarter. Legal & General Group Plc now owns 135,569 shares of the company’s stock valued at $63,835,000 after buying an additional 2,893 shares during the period. Nordea Investment Management AB increased its stake in shares of Chipotle Mexican Grill by 1,461.6% in the second quarter. Nordea Investment Management AB now owns 18,724 shares of the company’s stock valued at $7,541,000 after buying an additional 17,525 shares during the period. Moore Capital Management LP purchased a new stake in shares of Chipotle Mexican Grill during the first quarter valued at about $2,355,000. Finally, Zurich Insurance Group Ltd FI purchased a new stake in shares of Chipotle Mexican Grill during the first quarter valued at about $1,958,000. 96.65% of the stock is currently owned by institutional investors.
About Chipotle Mexican Grill
Chipotle Mexican Grill, Inc, together with its subsidiaries operates Chipotle Mexican Grill restaurants. The Company’s Chipotle Mexican Grill restaurants serve a menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads. The Company operates approximately 1,970 Chipotle restaurants throughout the United States, over 10 in Canada, seven in England, four in France and one in Germany.
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