Key Takeaways:
- Chipotle Mexican Grill (CMG, Financial) experiences its first same-store sales contraction in nearly five years.
- Despite a slight earnings beat, revenue falls short of estimates.
- Optimism from leadership suggests potential recovery by late 2024.
Chipotle Mexican Grill (CMG) has reported a notable decline in same-store sales for the first quarter, ending its nearly five-year streak of consistent growth. The decrease was primarily attributed to adverse weather conditions and a downturn in consumer spending, leading to a 0.4% dip in traffic. This contrasts sharply with the previous quarter's robust gain of 5.4%. While the company's adjusted earnings per share exceeded expectations by a slender margin, Chipotle's reported revenues of $2.9 billion fell short of market predictions. Despite these challenges, CEO Scott Boatwright remains optimistic, forecasting a return to positive transaction comps by late 2024.
Wall Street Analysts Forecast
In terms of Wall Street perceptions, 31 analysts have put forward one-year price targets for Chipotle Mexican Grill Inc (CMG, Financial). The average target price is set at $62.39, with predictions ranging from a high of $73.00 to a low of $46.12. This average target indicates a potential upside of 27.96% from the current market price of $48.76. Interested investors can delve deeper into these predictions on the Chipotle Mexican Grill Inc (CMG) Forecast page.
Furthermore, the consensus from 36 brokerage firms places Chipotle's average recommendation at 1.8, suggesting an "Outperform" status. This rating is on a scale from 1 to 5, where 1 signifies a Strong Buy and 5 denotes a Sell, pointing to a favorable market sentiment toward Chipotle.
GuruFocus's estimated GF Value for Chipotle Mexican Grill Inc (CMG, Financial) over the next year is $60.64. This projection suggests a potential upside of 24.36% from its current trading price of $48.76. The GF Value is calculated based on historical trading multiples, past business growth, and projections of future performance. For a more comprehensive analysis, investors can explore additional data on the Chipotle Mexican Grill Inc (CMG) Summary page.
