Morgan Stanley Cuts Chipotle Target to $49 After Q4 Sales Dip
Morgan Stanley cut its Chipotle Mexican Grill price target to $49 from $50 while maintaining an Overweight rating, reflecting caution after CMG’s Q4 comparable sales fell 2.5% despite a revenue beat. The move comes as Morgan Stanley’s shares traded down 1.0% on the update.
1. Price Target Revision
Morgan Stanley trimmed its Chipotle Mexican Grill price target to $49 from $50 and affirmed an Overweight rating, signaling cautious sentiment despite returns. The firm’s shares fell about 1.0% after the announcement.
2. Underlying Q4 Drivers
The revision followed Chipotle’s fourth-quarter results showing adjusted EPS of $0.25 on $2.98 billion revenue, beating estimates, while comparable restaurant sales declined 2.5% year-over-year. A 0.7% rise in average check partially offset a 3.2% drop in transactions, underlining mixed operational trends.