Chipotle Mexican Grill, Inc. (NYSE:CMG) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Wednesday, July 12th.

According to Zacks, “Chipotle shares have underperformed the Zacks classified Retail–Restaurants industry in the last year. It has a mixed record of earnings surprises in recent quarters and estimates have gone down ahead of its Q2 earnings release. Throughout 2016, Chipotle’s results were affected by negative publicity linked with food-borne illnesses. Though the company is on the road to recovery, it will take time to fully restore its economic model and customers’ trust and consequently build sales. Marketing initiatives, improvements in customer experience and superior digital ordering channels should aid in bringing back customers. Adoption of new food safety protocols and changes in the board is likely to reap results in the long run. Yet, Chipotle’s CEO seems anxious about reaching the earlier announced guidance for 2017, which raises concern. Also, higher costs could hurt margins while a soft industry backdrop might limit sales growth.”

CMG has been the subject of several other reports. Vetr upgraded shares of Chipotle Mexican Grill from a “sell” rating to a “hold” rating and set a $460.94 price objective for the company in a research note on Monday, May 1st. Barclays PLC lifted their price objective on shares of Chipotle Mexican Grill from $395.00 to $415.00 and gave the company an “equal weight” rating in a research note on Wednesday, April 26th. Telsey Advisory Group lifted their price objective on shares of Chipotle Mexican Grill from $400.00 to $440.00 and gave the company a “market perform” rating in a research note on Wednesday, April 26th. Wells Fargo & Company reiterated an “outperform” rating and issued a $470.00 target price (down from $530.00) on shares of Chipotle Mexican Grill in a research note on Monday, June 26th. Finally, Deutsche Bank AG reiterated a “sell” rating on shares of Chipotle Mexican Grill in a research note on Tuesday, June 20th. Seven analysts have rated the stock with a sell rating, twenty-three have given a hold rating, ten have given a buy rating and one has given a strong buy rating to the stock. Chipotle Mexican Grill has an average rating of “Hold” and an average target price of $405.15.

Chipotle Mexican Grill (NYSE:CMG) opened at 344.56 on Wednesday. Chipotle Mexican Grill has a 1-year low of $336.52 and a 1-year high of $499.00. The stock has a market capitalization of $9.82 billion, a price-to-earnings ratio of 74.07 and a beta of 0.62. The company has a 50-day moving average of $398.99 and a 200-day moving average of $431.70.

Chipotle Mexican Grill (NYSE:CMG) last announced its quarterly earnings data on Tuesday, July 25th. The restaurant operator reported $2.32 EPS for the quarter, beating the consensus estimate of $2.16 by $0.16. Chipotle Mexican Grill had a net margin of 3.17% and a return on equity of 10.65%. The business had revenue of $1.17 billion during the quarter, compared to analysts’ expectations of $1.19 billion. During the same period in the previous year, the business posted $0.87 EPS. The business’s quarterly revenue was up 17.1% compared to the same quarter last year. Analysts anticipate that Chipotle Mexican Grill will post $7.73 earnings per share for the current fiscal year.

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Institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. raised its position in shares of Chipotle Mexican Grill by 2.6% in the first quarter. Vanguard Group Inc. now owns 2,719,423 shares of the restaurant operator’s stock worth $1,211,558,000 after buying an additional 69,007 shares during the period. BlackRock Inc. raised its position in Chipotle Mexican Grill by 3,309.6% in the first quarter. BlackRock Inc. now owns 2,424,479 shares of the restaurant operator’s stock worth $1,080,155,000 after buying an additional 2,353,372 shares during the period. State Street Corp raised its position in Chipotle Mexican Grill by 3.7% in the first quarter. State Street Corp now owns 1,237,517 shares of the restaurant operator’s stock worth $551,348,000 after buying an additional 44,694 shares during the period. Clearbridge Investments LLC raised its position in Chipotle Mexican Grill by 13.7% in the first quarter. Clearbridge Investments LLC now owns 359,366 shares of the restaurant operator’s stock worth $160,105,000 after buying an additional 43,396 shares during the period. Finally, American Century Companies Inc. increased its stake in Chipotle Mexican Grill by 26.5% in the first quarter. American Century Companies Inc. now owns 352,826 shares of the restaurant operator’s stock worth $157,191,000 after buying an additional 73,914 shares during the period. Institutional investors and hedge funds own 96.47% of the company’s stock.

Chipotle Mexican Grill Company Profile

Chipotle Mexican Grill, Inc (Chipotle), together with its subsidiaries, operates Chipotle Mexican Grill restaurants. The Company’s Chipotle Mexican Grill restaurants serve a menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads. As of December 31, 2016, the Company managed its operations and restaurants based on 11 regions.

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