Shares of Chipotle Mexican Grill Inc (NYSE:CMG) tanked in early trading on Thursday, after the company reported a revenue miss for the second quarter.
Here are some key analyst takeaways.
- RBC Capital Markets analyst Logan Reich reiterated an Outperform rating, while reducing the price target from $65 to $58.
- KeyBanc Capital Markets analyst Eric Gonzalez maintained an Overweight rating, while cutting the price target from $60 to $58.
- Stephens analyst Jim Salera reaffirmed an Equal-weight rating and price target of $60.
- BMO Capital Markets analyst Andrew Strelzik reiterated an Outperform rating and price target of $65.
Check out other analyst stock ratings.
RBC Capital Markets: Chipotle Mexican Grill reported a 4% decline in same-store sales, which missed expectations by 112 basis points (bps), Reich said in a note. Management attributed the shortfall to "macro volatility and correlation to consumer sentiment which bottomed in May," he added.
The company's two-year comps bounced back to around 8% in June and July, with improving sentiment, the launch of a new dip called Adobo Ranch, and marketing initiatives, the analyst stated. "However, volatility through the qtr prompted mgmt to lower FY25 SSS guidance to ~flat from LSDs," he further wrote.
KeyBanc Capital Markets: Chipotle Mexican Grill reported its earnings for the quarter in line with estimates, with better-than-expected store-level margins offsetting the shortfall in same-store sales growth, Gonzalez said. "Food, beverage, and packaging cost was most favorable vs. consensus," he wrote.
While the company's same-store sales contracted by 4%, much worse than consensus of a 2.9% decline, trends improved in June and July, the analyst stated. Both traffic and same-store sales returned to low-single-digit growth, he added.
Stephens: Chipotle Mexican Grill reported mixed results, with a modest miss on same-store sales and restaurant level margins coming in at 27.4% versus consensus of 27.1%, Salera said. Management cut their full-year same-store sales guidance for the second consecutive quarter, due to "an uncertain macro backdrop," he added.
"We had hoped for a more upbeat tone around 3Q25 trends, but commentary remained measured, with positive late June and July trends balanced against the guidance reduction," the analyst wrote. Chipotle Mexican Grill's initiatives could drive longer-term benefits but are unlikely to have any material impact of its near-term performance, he further stated.
BMO Capital Markets: Chipotle Mexican Grill reported earnings of 33 cents per share, in-line with expectations, Strelzik said. Although sales modestly missed expectations, trends accelerated in June and July, he added. The company generated 8% two-year comps, which was needed to achieve the implied comps projections for the back half of the year, the analyst stated. Analysts are optimistic “easier compares will pair with key initiatives” to drive continued acceleration into 2026.
CMG Price Action: Shares of Chipotle Mexican Grill had declined by 11.65% to $46.63 at the time of publication on Thursday.
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