William Blair analyst Sharon Zackfia has reiterated their bullish stance on CMG stock, giving a Buy rating yesterday.
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Sharon Zackfia has given her Buy rating due to a combination of factors including Chipotle’s ability to maintain overall market share despite industry challenges. Although the company experienced a decline in traffic, particularly among customers with household incomes under $100,000 and those aged 25 to 35, it continues to gain share within this younger demographic.
Despite a softer start to the fourth quarter and expected declines in comparable sales, Chipotle’s third-quarter performance was in line with expectations, with adjusted EPS rising 9%. The company managed to offset lower-than-expected restaurant-level margins with reduced general and administrative expenses. These factors, combined with Chipotle’s strategic positioning and market share gains, underpin Zackfia’s positive outlook.
According to TipRanks, Zackfia is a 4-star analyst with an average return of 6.8% and a 45.59% success rate. Zackfia covers the Consumer Cyclical sector, focusing on stocks such as Birkenstock Holding plc, Royal Caribbean, and Potbelly.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $40.00 price target.