Chipotle Mexican Grill (CMG) PT Lowered to $40 at RBC Capital

RBC Capital analyst Logan Reich lowered the price target on Chipotle Mexican Grill (NYSE: CMG) to $40.00 (from $58.00) while maintaining an Outperform rating.

The analyst commented: "CMG's 4Q print was challenging and management's outlook on 4Q & 2026 was below consensus expectations coming in. Macro headwinds intensified q/q in Q3 and into October as consumers traded out of fast casual into food at home. Further, an intensifying promotional environment likely drove an expanding gap in consumer value perceptions where CMG's marketing messaging may require adjustments. 4Q was guided down and for '26 the company alluded to potential margin deleverage on MSDs COGS+labor inflation which we think could be multiple hundred basis points above pricing. We acknowledge top-line growth may be challenged until the macro improves but stick with the Outperform rating here given the runway for unit growth at best-in-class returns on capital and the stock indicating at near a post-COVID low multiple after hours. Lowering estimates and PT to $40."

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