452.59 +0.05 (0.01%)
After hours: 4:44PM EDT
|Bid||0.00 x 1100|
|Ask||0.00 x 900|
|Day's range||448.53 - 459.78|
|52-week range||247.52 - 474.46|
|PE ratio (TTM)||67.63|
|Earnings date||24 Jul 2018|
|Forward dividend & yield||N/A (N/A)|
|1y target est||416.70|
Investing.com - Enough is enough.After an 80% spike since Brian Niccol was named CEO in February, Chipotle shares were downgraded to sell by Mizuho.In a note to clients, the Wall Street firm said investors "should reduce their risk" because the stock price already reflects an "aggressive recovery" in sales and profit margins.Niccol recently outlined his turnaround plan for the burrito chain, but analysts called it short on details.Given that, Mizuho said there are no clear catalysts to "justify significant earnings upside." Mizuho, however, did acknowledge Niccol's "impressive track record" as CEO of Taco Bell, calling him the "best choice to lead Chipotle."Niccol replaced founder Steve Ells, who struggled to guide the company back from a series of food safety incidents dating back to 2015. The stock traded as high as $750 a share back then.
It was only a couple of years ago that fast casual dining was the biggest trend in the restaurant industry. Now, can Chipotle (CMG) lead a rebound in the dying trend?
On July 10, Mizuho Securities downgraded Chipotle Mexican Grill (CMG) from “neutral” to “underperform.” Following the downgrade, Chipotle’s stock price fell. By the end of the day, Chipotle was trading at $454.21—a fall of 2.1% from the previous day’s closing price.
On July 10, Jeremy Scott of Mizuho Securities downgraded Chipotle Mexican Grill (CMG) from “neutral” to “underperform.” Scott raised Chipotle’s target price from $300 to $330. The new target price represents a fall of 27.3% from the closing price of $454.21 on July 10. As reported by CNBC, in Scott’s research he said, “While it is our view that Niccol is the best choice to lead Chipotle from here, in the absence of clear catalysts that can justify significant earnings upside, we’re compelled to recommend investors reduce their risk.
A Tuesday note from Mizuho Securities, in which its analysts set an “underperform” rating and a $330 share price target that’s well below current levels and FactSet’s current mean target of about $416, discussed reasons menu innovation could challenge the company. “In a concept where the vast majority of traffic occurs in the lunch daypart and the productivity of its line crew thrives on the simple ordering option tree, innovation can carry unintended consequences,” the analysts wrote. Some of their observations: • The analysts lauded management’s stated intention to carefully craft processes around the actual production of new menu items, noting what might be interpreted as “a lower risk tolerance with regards to menu development.” • They also recently visited the Next Kitchen, where they observed some of the challenges—which we discussed after our own visit—firsthand.
On-demand food delivery startup Postmates is adding 100 markets nationwide and expanding its partnership with Chipotle.
•...and highlight a downgrade for Chipotle Mexican Grill (CMG). S&P 500 futures have ticked up 0.1%, while Dow Jones Industrial Average futures have risen 63 points, or 0.3%. Nasdaq Composite futures have advanced 0.1%.
Investors should sell Chipotle given a lack of clear innovation in the near-term, according to one analyst, and limit any upside for the already recovered stock.
The burrito roller makes an analyst's Fresh Picks list, but the chain has a lot to prove when it reports financial results on July 26.
The second half of 2018 will be tough for investors as they grapple with rising trade tensions and higher interest rates, according to Goldman Sachs. Companies with strong balance sheets, however, should do well in the tough times ahead.
Everytable, a tech-driven fast casual restaurant, raised $5.3 million from Kimbal Musk, Acumen, Maria Shriver and others.
Chipotle's new management team has laid out a clear plan for accelerating sales growth at the struggling fast-casual chain. Nevertheless, some investors felt there weren't enough details.
Shares of Chipotle Mexican Grill (CMG) got clobbered after its special investor call earlier this week, but SunTrust Robinson Humphrey thinks that the selloff was overdone. Analyst Jake Bartlett reiterated a Buy rating on the shares and raised his price target by $80 to $490 on Friday. Elsewhere, Bernstein's Sarah Senatore reiterated an Outperform rating and $195 price target on McDonald's (MCD), writing that it may be one of the "last of the truly global powerhouses." She writes that McDonald's has been able to show persistent strength thanks to scale advantages and differentiated offerings.
New Chipotle CEO Brian Niccol joined the company from Taco Bell in February. He's bringing some of the strategy with him. And there's new food being tested for the menu.
On June 28, Chipotle Mexican Grill (CMG) was trading at $428.36. After Chipotle’s special investor call on June 27, Canaccord Genuity raised the stock’s price target from $425 to $500, while Morgan Stanley increased its price target from $340 to $372. Of the 32 analysts that follow Chipotle, 25% are favoring “buys,” 68.8% are favoring “holds,” and 6.3% are favoring “sells” on the stock.
Brian Niccol, the CEO of Chipotle Mexican Grill (CMG), is focusing on the implementation of technological advancements, restaurant remodeling, menu innovations, delivery service expansion, and a new marketing campaign to win back customer loyalty and drive the company’s sales. Chipotle’s digital sales are nearing $500 million and account for 9% of the company’s total sales. Niccol believes that Chipotle’s digital sales could be increased multiple times via suitable measures.
By the end of June 28, Chipotle Mexican Grill (CMG) stock was trading at $428.36, a fall of 6.3% from its previous day’s closing price. The lack of detailed information made investors skeptical about the company’s future earnings, leading to a fall in its stock price. To enhance the customer experience and win back customers, Chipotle will be focusing on becoming more relevant and engaging.