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.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
CMG in upward trend: 10-day moving average crossed above 50-day moving average on August 24, 2026
The 10-day moving average for CMG crossed bullishly above the 50-day moving average on August 24, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 11 of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 85%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
CMG moved above its 50-day moving average on August 19, 2026 date and that indicates a change from a downward trend to an upward trend.
The 50-day moving average for CMG moved above the 200-day moving average on September 04, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a +0.47% 3-day Advance, the price is estimated to grow further. Considering data from situations where CMG advanced for three days, in 194 of 318 cases, the price rose further within the following month. The odds of a continued upward trend are 61%.
The Aroon Indicator entered an Uptrend today. In 154 of 250 cases where CMG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 62%.
Bearish Trend Analysis
The 10-day RSI Indicator for CMG moved out of overbought territory on August 25, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 34 similar instances where the indicator moved out of overbought territory. In 18 of the 34 cases, the stock moved lower in the following days. This puts the odds of a move lower at 53%.
The Momentum Indicator moved below the 0 level on September 08, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on CMG as a result. In 51 of 78 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 65%.
The Moving Average Convergence Divergence Histogram (MACD) for CMG turned negative on September 09, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In 29 of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at 67%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 64%.
CMG broke above its upper Bollinger Band on August 21, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 20 (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 43 (best 1 - 100 worst), indicating steady price growth. CMG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 44 (best 1 - 100 worst), pointing to consistent 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.
The Tickeron Valuation Rating of 82 (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: CMG's P/B Ratio (20.833) is slightly higher than the industry average of (5.556). P/E Ratio (33.519) is within average values for comparable stocks, (39.610). Projected Growth (PEG Ratio) (1.601) is also within normal values, averaging (1.640). CMG has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.029). P/S Ratio (3.817) is also within normal values, averaging (2.744).
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CMG’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock worse than average.
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General Information
an operator of fast-casual, fresh Mexican food restaurants
Industry Restaurants
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