Chipotle Stock Is Trading Lower Thursday: What's Going On?

Chipotle Mexican Grill, Inc. (NASDAQ:CMG) shares are trading lower Thursday after the company reported worse-than-expected second-quarter sales on Wednesday after the market closed.

What To Know: Chipotle reported sales of $3.06 billion, missing the consensus estimate of $3.10 billion, but representing 3% year-over-year climb. In addition, the company reported adjusted earnings per share of 33 cents, inline with the consensus estimate.

Comparable restaurant sales fell 4% in the second quarter, driven by a 4.9% decline in transactions, partially offset by a 0.9% increase in average check.

The company opened 61 new restaurants in the quarter, including 47 Chipotlanes, which continue to drive higher sales and margins.

Outlook: The company is anticipating 315 to 345 new company-owned restaurant openings with over 80% having a Chipotlane and flat full year comparable restaurant sales.

Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.

• Stephens & Co. analyst Jim Salera reiterated an Equal-Weight rating on Chipotle and maintained a $60 price target.
• Barclays analyst Jeffrey Bernstein maintained an Equal-Weight rating on Chipotle and lowered the price target from $55 to $53.
• Baird analyst David Tarantino maintained an Outperform rating on Chipotle and lowered the price target from $62 to $59.
• Keybanc analyst Eric Gonzalez maintained an Overweight rating on Chipotle and lowered the price target from $60 to $58.
• Wells Fargo analyst Zachary Fadem maintained an Overweight rating on Chipotle and lowered the price target from $65 to $60.

The consensus price target for Chipotle is $60.86, with the highest price target at $70 and the lowest price target at $47.

See Also: Caller Wants To Combine Finances Before Marriage. Dave Ramsey Replies, ‘She Likes Her Rental Property More Than She Likes You’

CMG Price Action: At the time of writing, Chipotle stock is trading 11.9% lower at $46.50, according to data from Benzinga Pro.

Image via Shutterstock