Key Insights:
- Chipotle's earnings per share exceeded expectations, but revenues failed to meet projections.
- Analysts foresee significant stock price growth, with an average target suggesting nearly a 28% upside.
- The stock carries an "Outperform" rating from major brokerage firms.
Chipotle Mexican Grill (NYSE: CMG) has recently unveiled its financial performance, reporting a non-GAAP earnings per share of $0.29, narrowly exceeding forecasts by $0.01. Despite this success, Chipotle faced a revenue shortfall, falling $40 million below projections with total revenues hitting $2.9 billion. This gap highlights the brand's ongoing battle with declining customer traffic.
Wall Street Analysts' Predictions
According to a compilation of projections from 31 financial analysts, the average 12-month target price for Chipotle Mexican Grill Inc (CMG, Financial) is $62.39. Analysts' projections span a high of $73.00 and a low of $46.12, suggesting a promising upside potential of 27.96% based on the current stock price of $48.76. Investors can explore more detailed target estimates on the Chipotle Mexican Grill Inc (CMG) Forecast page.
The stock's potential is further underscored by an "Outperform" recommendation from 36 brokerage firms, with an average rating of 1.8. This rating is on a scale of 1 to 5, where 1 represents a "Strong Buy" and 5 signals a "Sell."
Understanding Chipotle's GF Value
GuruFocus provides an estimated GF Value for Chipotle Mexican Grill Inc (CMG, Financial) in the coming year, pegged at $60.64. This valuation estimate implies a 24.36% upside from the present stock value of $48.76. The GF Value is a crucial metric, reflecting the fair value the stock should ideally trade at. This is determined by historical trading multiples, past business growth, and future performance estimates. More insights into Chipotle's valuation can be accessed on the Chipotle Mexican Grill Inc (CMG) Summary page.
