Chipotle Mexican Grill, Inc. (NASDAQ:CMG) shares are trading lower Thursday after the company reported worse-than-expected second-quarter sales on Wednesday after the market closed.
What To Know: Chipotle reported sales of $3.06 billion, missing the consensus estimate of $3.10 billion, but representing 3% year-over-year climb. In addition, the company reported adjusted earnings per share of 33 cents, inline with the consensus estimate.
Comparable restaurant sales fell 4% in the second quarter, driven by a 4.9% decline in transactions, partially offset by a 0.9% increase in average check.
The company opened 61 new restaurants in the quarter, including 47 Chipotlanes, which continue to drive higher sales and margins.
Outlook: The company is anticipating 315 to 345 new company-owned restaurant openings with over 80% having a Chipotlane and flat full year comparable restaurant sales.
Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.
- Stephens & Co. analyst Jim Salera reiterated an Equal-Weight rating on Chipotle and maintained a $60 price target.
- Barclays analyst Jeffrey Bernstein maintained an Equal-Weight rating on Chipotle and lowered the price target from $55 to $53.
- Baird analyst David Tarantino maintained an Outperform rating on Chipotle and lowered the price target from $62 to $59.
- Keybanc analyst Eric Gonzalez maintained an Overweight rating on Chipotle and lowered the price target from $60 to $58.
- Wells Fargo analyst Zachary Fadem maintained an Overweight rating on Chipotle and lowered the price target from $65 to $60.
The consensus price target for Chipotle is $60.86, with the highest price target at $70 and the lowest price target at $47.
CMG Price Action: At the time of writing, Chipotle stock is trading 11.9% lower at $46.50, according to data from Benzinga Pro.
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