Chipotle Mexican Grill Earnings Report Exceeds Expectations

Chipotle Mexican Grill (NYSE:CMG) announced its latest quarterly earnings on Tuesday. The company reported earnings of $0.25 per share (EPS) for the quarter, which surpassed the consensus estimate of $0.24 by $0.01, according to Zacks. The restaurant chain achieved a remarkable return on equity of 43.20% and maintained a net margin of 13.51%.

Chipotle Mexican Grill Stock Performance

During midday trading on Tuesday, the stock of Chipotle Mexican Grill saw an increase, rising by $0.74 to reach $59.10. In total, 14,016,241 shares were traded, significantly higher than the average volume of 9,662,695 shares. Over the past year, Chipotle's stock has experienced a low of $47.98 and a high of $69.26. The fifty-day moving average price stands at $60.43, while the two-hundred-day moving average price is $57.80. The company boasts a market capitalization of $80.53 billion, with a price-to-earnings (PE) ratio of 55.01, a price-to-earnings-growth (PEG) ratio of 2.07, and a beta of 1.27.

Wall Street Analysts Forecast Growth

Several financial research firms have provided insights regarding Chipotle's stock. Citigroup recently adjusted their target price from $70.00 to $69.00 and maintained a "buy" rating for the company. Meanwhile, Wells Fargo increased its price target from $67.00 to $75.00, labeling the stock as "overweight". Robert W. Baird also raised its target price from $62.00 to $70.00, giving it an "outperform" rating. Piper Sandler improved its outlook from $59.00 to $60.00 and stated a "neutral" rating. Additionally, Evercore ISI adjusted its price objective from $70.00 to $72.00 with an "outperform" rating. Out of all analysts, ten have rated the stock as a hold and eighteen have given a buy rating. MarketBeat reports an average rating of "Moderate Buy" with a target price of $66.88.

Insider Activity at Chipotle Mexican Grill

In other news, Laurie Schalow, an insider at Chipotle, sold 4,404 shares on December 10 at an average price of $65.01, amounting to a total of $286,304.04. Following this transaction, Schalow retains ownership of 185,792 shares valued at about $12,078,337.92, representing a 2.32% reduction in ownership. This transaction was documented in a legal filing accessible through the SEC. Currently, 1.02% of Chipotle's stock is owned by its insiders.

Company Overview

Chipotle Mexican Grill, Inc., along with its subsidiaries, operates a chain of restaurants that serve Mexican cuisine, including burritos, burrito bowls, tacos, and salads. In addition to dine-in services, Chipotle offers delivery and related services through its app and website. The company operates not only in the United States but also in Canada, France, Germany, and the United Kingdom.

Earnings, Finance, Stocks