Chipotle (CMG, $598.91) overwhelmingly beats earnings estimate; many analysts raise price target
Many analysts raised their price targets for Chipotle Mexican Grill, Inc.'s stock, following the company’s solid earnings and sales report.
On Wednesday, the fast-food chain of restaurants reported fourth quarter adjusted earnings per share of $1.72, which far outpaced the $1.37 a share figure expected by analysts (based on Refinitiv data).
Revenues of $1.23 billion for the quarter beat estimate of $1.194 billion. The company’s same-store sales growth of +6.1% exceeded analysts’ expected +4.49%. (based on Refinitiv data).
Chipotle’s digital orders surged +65.9% in the quarter, and contributed to 12.9% of its sales. Chipotle is reportedly upping the ante on its online market, by upgrading its kitchens, boosting pickup shelves for displaying online orders, and testing out its drive-through windows services that allow customers to pick up what they ordered online.
Several analysts seem to believe that there’s strong potential in the restaurant chain’s recent performance. Morgan Stanley, for example upgraded its price target for Chipotle stock to $617 from $600. Bank of America raised the target to $400 from $340. J.P. Morgan revised it to $550 from $500. However, some analysts, such as Goldman Sachs, were somewhat cautious on their outlook on the stock.
The stock was up more than +13% in early trading Thursday.
CMG's Indicator enters downward trend
The Aroon Indicator for CMG entered a downward trend on September 17, 2025. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 158 similar instances where the Aroon Indicator formed such a pattern. In of the 158 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on August 26, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on CMG as a result. In of 80 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CMG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where CMG's RSI Oscillator exited the oversold zone, of 34 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 14 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The Moving Average Convergence Divergence (MACD) for CMG just turned positive on September 17, 2025. Looking at past instances where CMG's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CMG advanced for three days, in of 331 cases, the price rose further within the following month. The odds of a continued upward trend are .
CMG may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. CMG’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (15.083) is normal, around the industry mean (6.253). P/E Ratio (35.106) is within average values for comparable stocks, (34.533). Projected Growth (PEG Ratio) (1.706) is also within normal values, averaging (1.541). Dividend Yield (0.000) settles around the average of (0.051) among similar stocks. P/S Ratio (4.673) is also within normal values, averaging (8.507).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
an operator of fast-casual, fresh Mexican food restaurants
Industry Restaurants
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