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Chipotle Mexican Grill Q2 Sales Decline, June-July Boost Keeps Analysts Bullish
Benzingaยท 2025-07-24 15:18
Core Viewpoint - Chipotle Mexican Grill Inc experienced a significant decline in share price following a revenue miss for the second quarter, with analysts providing mixed assessments on the company's performance and future outlook [1][9]. Group 1: Financial Performance - The company reported a 4% decline in same-store sales, missing expectations by 112 basis points [2]. - Earnings per share were reported at 33 cents, aligning with expectations, while store-level margins were better than anticipated [4][8]. - Despite the same-store sales contraction, trends improved in June and July, with two-year comps bouncing back to around 8% [3][5]. Group 2: Management Guidance - Management lowered the full-year same-store sales guidance to approximately flat from low single digits due to macroeconomic uncertainties [3][6]. - Analysts noted that while there were positive trends in late June and July, the overall commentary remained cautious, balancing optimism with guidance reductions [7]. Group 3: Analyst Ratings and Price Targets - RBC Capital Markets reduced its price target from $65 to $58 while maintaining an Outperform rating [10]. - KeyBanc Capital Markets also cut its price target from $60 to $58 but kept an Overweight rating [10]. - BMO Capital Markets reiterated an Outperform rating with a price target of $65, indicating some optimism for future performance [10].