Valued at $82.5 billion by market cap, Chipotle Mexican Grill, Inc. (CMG) is a significant player in the fast-casual dining industry. Headquartered in Newport Beach, California, the company specializes in fresh, customizable Mexican-inspired cuisine, focusing on responsibly sourced ingredients and exceptional customer experiences.
Companies worth $10 billion or more are generally considered "large-cap" stocks, and Chipotle Mexican Grill comfortably falls within this category. This fast-casual dining leader embodies growth and innovation in the restaurant industry. Starting from a single location in Denver, Chipotle has built a global reputation, redefining fast food with its focus on fresh, high-quality ingredients and a commitment to sustainability, setting new standards in the dining experience worldwide.
Chipotle Mexican Grill is down 12.6% from its 52-week high of $69.26, achieved on Jun. 18. CMG has gained 8% over the three months, underperforming the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 19.8% gains during the same time frame.
Over the long term, CMG has gained 32.4% on a YTD basis, and the shares are up 35.5% over the past 52 weeks. By contrast, XLY has gained 25.4% in 2024 and 31.1% over the past year.
However, CMG has been trading above its 200-day and 50-day moving averages since early November, indicating a bullish price trend.
Shares of Chipotle Mexican Grill dropped over 7% following the release of its Q3 earnings on Oct. 29. The company reported revenue of $2.79 billion, up 13% year-over-year and matching Wall Street’s expectations. Adjusted EPS came in at $0.27, beating consensus estimates by 6.6%, while EBITDA of $643.5 million exceeded forecasts by 21.3%.
Key metrics showed stable performance, with gross and operating margins consistent at 39.3% and 16.9%, respectively, and EBITDA margin improving to 23% from 19.2% a year ago. The company reaffirmed its guidance for mid- to high-single-digit same-store sales growth for the full year.
Its rival, Yum! Brands, Inc. (YUM) has gained 9.2% over the past 52 weeks and 6.4% on a YTD basis, trailing CMG's performance over both time frames.
Despite CMG’s recent underperformance compared to the broader sector, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 31 analysts in coverage, and the mean price target of $66.35 suggests a premium of 9.6% to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- 3 Undervalued Stocks to Buy This December
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