William Blair analyst Sharon Zackfia has maintained their bullish stance on CMG stock, giving a Buy rating yesterday.
Sharon Zackfia’s rating is based on Chipotle’s ability to deliver modest earnings per share growth despite facing softer sales figures. The company’s first-quarter adjusted EPS rose by 9%, slightly surpassing both consensus and internal estimates, due to better-than-expected restaurant-level margins, lower general and administrative expenses, and a reduced tax rate.
Despite a decline in comparable sales, which turned negative for the first time since 2020 due to economic uncertainties, Chipotle’s management remains optimistic. They anticipate that operational improvements and increased marketing efforts will lead to positive trends in the latter half of the year. This optimism, combined with the company’s ability to manage costs effectively, supports the Buy rating.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $57.00 price target.
Based on the recent corporate insider activity of 75 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CMG in relation to earlier this year.