Chipotle price target lowered to $64 from $66 at KeyBanc

KeyBanc analyst Eric Gonzalez lowered the firm’s price target on Chipotle (CMG) to $64 from $66 and keeps an Overweight rating on the shares. The firm notes Chipotle’s Q4 results included in-line EPS, driven by slightly better than expected store-level margins, partially offset by slightly lower than expected same-store sales growth of 5.4%. However, same-store sales trends decelerated in January due to weather and a New Year’s Day shift. As such, Q1 2025 same-store sales growth is likely to fall in the low single digit range, and Q2 could be slightly lower given holiday shifts and difficult year-over-year comparisons, KeyBanc adds. Nonetheless, the firm remains bullish as it believes underlying demand remains strong and Chipotle’s digital capabilities, brand positioning, and marketing/innovation expertise provide for best-in-class unit returns and a unique level of resilience that is worth a premium valuation to peers.