Chipotle Mexican Grill (CMG), the fast-food Mexican chain, is set to report its second-quarter 2025 results on Wednesday, July 23. So far this year, CMG stock has dropped over 10%, weighed down by broad economic concerns and ongoing tariff uncertainty. Despite the recent dip, several analysts have raised their price targets on CMG ahead of earnings, indicating confidence in the company’s longer-term growth story. While some short-term weakness is expected in Q2 due to macro pressures, analysts remain upbeat about a rebound in the second half of 2025.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
What to Watch on July 23
Wall Street expects Chipotle Mexican Grill to report earnings of $0.33 per share, down 3% from the same quarter last year. Revenue is expected to increase about 5% year-over-year to $3.11 billion.
Investors will pay attention to management’s commentary on consumer spending amid macro woes and the impact of tariffs.
Analysts’ Opinion about CMG Stock Ahead of Q2 Print
On July 17, BMO Capital analyst Andrew Strelzik upgraded the stock from Hold to Buy and increased the price target to $65 from $56, suggesting more than 20% upside.
The analyst said he expects Chipotle’s same-store sales and profit margins to improve in the second half of 2025. He also pointed to the company’s strong U.S. store growth, which could rise to around 10% over time. Strelzik believes these trends, along with Chipotle’s strong competitive position, support a higher valuation. His $65 target is based on a 45x price-to-earnings ratio, in line with the stock’s historical average.
Meanwhile, UBS analyst Dennis Geiger raised his price target on CMG stock to $65 from $60 and maintained a Buy rating on the stock.
Geiger said second-quarter same-store sales are likely to be soft due to tough comparisons and macro headwinds, but he expects sales trends to improve through the quarter and into the second half of 2025. UBS sees recent weakness as temporary, with no major structural issues. Overall, he believes Chipotle’s key growth drivers, such as menu innovation, marketing efforts, and better store efficiency, should continue to support its performance.
Is CMG Stock a Buy, Sell, or Hold?
Overall, Wall Street has a Moderate Buy consensus rating on Chipotle Mexican Grill stock based on 21 Buys and eight Holds. The average CMG stock price target of $60.44 implies about 12.07% upside potential from current levels.
