Burrito chain Chipotle falls on Q3 sales miss, tepid margins
Updates
** Chipotle Mexican Grill's CMG.N shares fall ~6% to $56.91
** Burrito chain on Tuesday posted Q3 same-store sales growth that missed market expectations, hurt by higher menu prices
** Company maintained annual growth target for comparable restaurant sales in mid to high single-digit range
** Restaurant-level operating margin was 25.5% in Q3, down from 26.3% last year
** "We are more constructive on shares in the low $50s but are interested in several operational efficiency initiatives that could allow some margin recapture in 2H25 and beyond" - J.P.Morgan
** Brokerage Truist views the 2025 forecast of 315 to 345 new company-operated stores as "conservative" and due to the new management team's "less aggressive stance" toward development
** Brokerage TD Cowen raises PT on company's shares to $68 from $65 on confidence in positive traffic that can be sustained
** 25 of 35 brokerages rate the stock "buy" or higher and 10 "hold"; median PT $67 - LSEG
** YTD, stock up 32% as of last close
Reporting by Savyata Mishra and Neil J Kanatt in Bengaluru
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