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In the latest close session, Chipotle Mexican Grill (CMG - Free Report) was down 2.2% at $27.52. The stock fell short of the S&P 500, which registered a loss of 0.52% for the day. Meanwhile, the Dow lost 1.24%, and the Nasdaq, a tech-heavy index, lost 0.21%.

Shares of the Mexican food chain have depreciated by 12.09% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 2.31%, and the S&P 500's loss of 1.21%.

Analysts and investors alike will be keeping a close eye on the performance of Chipotle Mexican Grill in its upcoming earnings disclosure. The company's earnings report is set to go public on October 28, 2026. The company is predicted to post an EPS of $0.29, indicating constancy compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $3.29 billion, indicating a 9.46% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.14 per share and revenue of $13 billion, indicating changes of -2.56% and +8.97%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Chipotle Mexican Grill. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% lower. Chipotle Mexican Grill is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, Chipotle Mexican Grill is currently being traded at a Forward P/E ratio of 24.58. This represents a premium compared to its industry average Forward P/E of 21.23.

We can additionally observe that CMG currently boasts a PEG ratio of 1.71. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 1.74 at yesterday's closing price.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 41% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Key Takeaways Chipotle to report Q3 results Oct. 28, 2026, with revenues expected to rise 9.5% to $3.29 billion.Menu innovation, digital rewards, restaurant expansion and pricing are expected to support sales growth.Higher beef, freight, wage and operating costs could pressure margins, projected to fall 80 bps to 25%.
Chipotle Mexican Grill, Inc. (CMG - Free Report) is scheduled to report third-quarter 2026 results on Oct. 28.

CMG’s earnings beat the Zacks Consensus Estimate in the trailing three out of four quarters and reported in line once, the average surprise being 2.7%.

Trend in the Estimate Revision of CMGThe Zacks Consensus Estimate for third-quarter earnings per share (EPS) is pegged at 29 cents, flat year over year.

For revenues, the consensus mark is pegged at $3.29 billion. The metric suggests a rise of 9.5% from the year-ago quarter’s figure.

Let us take a look at how things might have shaped up in the quarter to be reported.

Factors Likely to Shape CMG’s Quarterly ResultsChipotle’s third-quarter 2026 revenues are likely to have benefited from continued menu innovation, improved restaurant execution and efforts to strengthen customer engagement. The company’s Recipe for Growth strategy focuses on driving transaction growth through better food quality, generous portions, faster service and enhanced hospitality. The return of popular limited-time offerings and investments in high-efficiency kitchen equipment are expected to have supported customer traffic and repeat visits. However, softer restaurant industry trends and cautious consumer spending might have limited the extent of sales growth.

Menu innovation is likely to have remained an important revenue driver for Chipotle in the third quarter. The successful return of Chipotle Honey Chicken, along with sustained demand for Cilantro Lime Sauce, has helped attract new customers and encouraged existing guests to visit more frequently. The company has also been emphasizing high-protein offerings to capitalize on consumer interest in protein-rich meals.

Chipotle’s refreshed marketing strategy, including culturally relevant promotions and the Matchday BOGO campaign, has helped strengthen brand engagement. Further, the company's focus on communicating the quality of its ingredients and the value of the offerings might have supported customer acquisition and spending.

Chipotle’s digital initiatives and restaurant expansion are also likely to have contributed to third-quarter sales. The revamped Rewards program, personalized offers and Summer of Extras campaign are expected to have encouraged repeat purchases and improved customer frequency. Efforts to simplify loyalty enrollment and enhance digital ordering might have further strengthened engagement.

Meanwhile, the rollout of its high-efficiency equipment package (“HEEP”) has been improving kitchen productivity, order fulfillment and service speed, potentially allowing restaurants to serve more customers during peak periods. New restaurant openings, including locations equipped with Chipotlanes, are likely to have supported overall revenue growth. In addition, gradual menu price increases are expected to have provided a further lift to sales. Our model predicts Food and Beverage as well as Delivery Service revenues to increase 8.5% and 10.5% year over year.

Chipotle’s third-quarter 2026 bottom line is likely to have received support from higher menu prices, improved restaurant throughput and operating efficiencies associated with HEEP. Management expects pricing to contribute in the mid-2% range during the quarter, helping offset some inflationary pressure.

However, elevated beef, freight and other ingredient costs, along with wage inflation, might have weighed on restaurant-level margins. Higher marketing investments, insurance, maintenance and utility expenses are also likely to have pressured profitability. Management anticipated restaurant-level operating costs to remain elevated, with other operating costs expected in the mid-15% range.

Additionally, tougher year-over-year comparisons, consumer caution and the potential sales impact of the cyclospora-related industry concerns might have constrained operating leverage. Thus, although pricing and operational improvements might have provided some relief, persistent cost pressures are likely to have remained a challenge for margins.

Our model predicts third-quarter restaurant-level margins to decline 80 basis points year over year to 25%.

What Our Model Says About CMG StockOur proven model does not predict an earnings beat for Chipotle this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Earnings ESP for CMG: Chipotle has an Earnings ESP of -0.39%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Chipotle’s Zacks Rank: The company currently carries a Zacks Rank #3.

Stocks With the Favorable CombinationHere are some stocks from the Zacks Retail-Wholesale sector, which, according to our model, have the right combination of elements to post an earnings beat this reporting cycle.

Starbucks Corporation (SBUX - Free Report) currently has an Earnings ESP of +0.24% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the to-be-reported quarter, SBUX’s earnings are expected to increase 40.4% year over year. SBUX’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with the average surprise being 8.4%.

Sweetgreen, Inc. (SG - Free Report) has an Earnings ESP of +4.26% and a Zacks Rank of 2 at present.

In the to-be-reported quarter, Sweetgreen’s earnings are expected to register a 3.7% year-over-year decline. SG’s earnings lagged estimates in each of the trailing four quarters, with the average miss being 43%.

Brinker International, Inc. (EAT - Free Report) currently has an Earnings ESP of +0.59% and a Zacks Rank of 3.

In the to-be-reported quarter, Brinker earnings are expected to register a 29% year-over-year increase. EAT’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.2%.

Chipotle Mexican Grill stock continued its strong downward trend as analysts remained concerned about its slowing growth. CMG dropped to $28.15, its lowest level since June 4, and 32% below the year-to-date high. Focus now shifts to the upcoming earnings report, which may shed insights on its business.

Top analysts have lowered their estimates of Chipotle Mexican Grill, citing its slow revenue and profitability growth. Andrew Charles, a TD Cowen analyst who has long maintained a bullish outlook for the stock, has downgraded his recommendation and target. 

He lowered his target from $44 to $32, the lowest target among analysts. He also noted that the stock may drop to as low as $25 a share in the next 12 months. He said:

“The start of the quarter is showing underlying softness at a time when the business ought to be clicking. Now that we believe that it’s more likely Chipotle is going to miss 2027 estimates more materially, we thought now is a good time to move to the sidelines.”

Other top analysts have lowered their targets on Chipotle stock. Deutsche Bank lowered its target from $51 to $45, while Wells Fargo’s Zachary Fadem slashed from $45 to $40. Citigroup’s John Tower cut the target from $45 to $43.

As a result, the consensus target among analysts is $43.74, much lower than where it was 12 months ago, when analysts were expecting it to rise to $56.4. 

READ MORE: Why it makes no sense for Starbucks to acquire Chipotle

The ongoing CMG stock retreat has coincided with the weakness in its business as many consumers complain about the elevated inflation. US consumer confidence has also been in a downward trend in the past few months. 

The most recent results showed that Chipotle’s revenue rose 9.3% in the second quarter to $3.3 billion. Its comparable restaurant sales rose by 2.2%, while its operating profit margin fell to 15.7% from the previous 18.2%.

Yahoo Finance data shows that analysts expect the upcoming earnings to show that its revenue rose by 9.35% in the third quarter to $3.28 billion. Its full-year guidance is expected to come in at $13.02 billion, up by 9.2% from last year. 

Chipotle will need to reassure investors that the “Recipe for Growth” strategy was working. This approach has five pillars, including operational excellence, digital innovation, menu development, talent cultivation, and global expansion. It plans to open 350 to 370 new restaurants this year, with some of them being international ones. It has already opened new stores in Mexico.

Chipotle is also working on increasing the number of stores with Chipotlanes, improving its menu, and ways to increase traffic flow. Signs that these strategies are working will boost its stock price. 

Chipotle stock chart | Source: TradingView

The daily chart shows that Chipotle stock has been in a strong sell-off this year. This sell-off started in 2024 when it peaked at $69.28. It has formed a series of lower lows and lower highs. 

The stock has dropped below all moving averages. It is also stuck at a crucial support level, which coincides with the lowest level in June. 

Moving below that level will point to more downside, potentially to the psychological level of $25, which is about 10% below the current level.

A Look at Chipotle Mexican Grill Inc (CMG) After 5.2% Decline -- GF Value $60.68 vs Price $28.12

On October 21, 2026, Chipotle Mexican Grill Inc CMG shares fell 5.2% to a current price of $28.12, oscillating between a 52-week high of $42.74 and a low of $28.04. The recent price drop reflects a broader trend, with the stock down 24.0% year-to-date and 33.6% over the past year.

GF Value™ verdict: Current price of $28.12 versus GF Value of $60.68 indicates a 53.7% undervaluation.GF Score™ of 85/100 suggests a strong overall performance with notable strengths in profitability and growth.Insider activity reveals that insiders sold $7.2M worth of shares over the past 12 months, signaling a lack of confidence from company insiders.Is CMG Overvalued or Undervalued?Chipotle Mexican Grill Inc CMG is currently assessed as significantly undervalued according to the GF Value™, which estimates its intrinsic value at $60.68. This valuation indicates a substantial margin of safety, as the shares are priced at $28.12, reflecting a potential upside of 53.7%. The GF Value™ is derived from a combination of historical trading multiples, past business growth, and projections for future performance, which positions CMG as a compelling opportunity in today’s market.

Despite the attractive valuation, potential investors should exercise caution given the recent downward trend in share price and the significant insider selling. This could suggest that while the stock appears undervalued on paper, market sentiment may be more cautious, reflecting concerns regarding future performance or operational challenges that could impact profitability.

How Does CMG's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)25.9x50.9xForward P/E20.5x-Currently, CMG's P/E ratio stands at 25.9x, which is significantly below its 5-year median of 50.9x, indicating that the stock is trading at a discount relative to its historical valuation metrics. The forward P/E of 20.5x further supports the notion of undervaluation. This P/E analysis aligns with the GF Value™ verdict, suggesting that CMG may be a hidden gem in the restaurant sector.

What Does CMG's GF Score™ Tell Us?The GF Score™ evaluates a stock's overall performance across several key factors including financial strength, profitability, growth, valuation, and momentum. With a GF Score™ of 85/100, CMG demonstrates strong performance particularly in profitability and growth, while facing challenges in valuation and momentum.

MetricRatingGF Score™85Financial Strength4/10Profitability9/10Growth10/10Valuation4/10Momentum4/10CMG’s strong profitability and growth ranks indicate solid operational performance, suggesting that the company can generate substantial earnings and is well-positioned for future expansion. However, the lower rankings in financial strength and valuation highlight potential risks that could impact long-term stability and stock performance.

What Are Gurus and Insiders Doing with CMG?Currently, 8 gurus hold positions in CMG, with 3 adding to their stakes while 7 have trimmed their holdings in recent quarters. This indicates a mixed sentiment among institutional investors, reflecting both confidence from those increasing their positions and caution from those reducing their exposure.

Additionally, insider activity shows that insiders sold $7.2M worth of shares over the past 12 months, with no recorded buying. This pattern of selling could imply that insiders may have reservations about the company's short-term performance or future prospects. Such behavior warrants careful consideration for potential investors, as it may signal a lack of confidence from those most familiar with the company.

What This Means for InvestorsConsidering the analysis, Chipotle Mexican Grill Inc CMG appears to be undervalued based on the GF Value™ assessment, presenting a significant opportunity for potential investors. However, the recent insider selling and mixed guru activity suggest that there may be underlying concerns that could affect its future performance. As such, a balanced approach is necessary when evaluating this stock.

For more detailed insights, visit the Chipotle Mexican Grill Inc CMG stock page, and explore the GF Value™ page for a deeper understanding of its valuation metrics.

Frequently Asked QuestionsWhat is CMG's GF Score™?

CMG has a GF Score™ of 85/100, indicating a strong overall performance with notable strengths in profitability and growth.

Is CMG overvalued or undervalued?

CMG is currently undervalued according to the GF Value™, with a significant potential upside of 53.7% from its current price.

What is CMG's P/E ratio?

CMG's P/E ratio is 25.9x, which is substantially below its 5-year median of 50.9x, indicating that the stock is trading at a discount to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

Chipotle Mexican Grill Inc. (NYSE:CMG) stock traded lower Wednesday after analysts cut their price forecasts, with TD Cowen downgrading the stock amid concerns about slowing sales growth and an uncertain recovery.

Chipotle (CMG) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.

Frank Rimerman Advisors LLC acquired a new position in shares of Chipotle Mexican Grill, Inc. (NYSE: CMG) during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 39,323 shares of the restaurant operator's stock, valued at approximately $1,256,000. Several other

Chipotle Mexican Grill (CMG - Free Report) closed the most recent trading day at $29.86, moving -2.37% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 1.09% for the day. Meanwhile, the Dow experienced a drop of 0.34%, and the technology-dominated Nasdaq saw a decrease of 2.15%.

Heading into today, shares of the Mexican food chain had lost 8.74% over the past month, lagging the Retail-Wholesale sector's gain of 3.71% and the S&P 500's gain of 2.44%.

Investors will be eagerly watching for the performance of Chipotle Mexican Grill in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 28, 2026. The company's upcoming EPS is projected at $0.29, signifying steadiness compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $3.29 billion, indicating a 9.39% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.14 per share and revenue of $13 billion, indicating changes of -2.56% and +8.98%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Chipotle Mexican Grill. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. Chipotle Mexican Grill currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, Chipotle Mexican Grill is currently exchanging hands at a Forward P/E ratio of 26.71. This denotes a premium relative to the industry average Forward P/E of 20.7.

Investors should also note that CMG has a PEG ratio of 1.87 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 1.82.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 151, which puts it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Chipotle Mexican Grill (CMG +0.20%) is a restaurant industry pioneer. It popularized the fast-casual dining concept. The focus on fresh, customizable food, fast service, and reasonable prices has made the business a household name.

Shares have been feeling the heat. As of Oct. 14, they have fallen 18% in 2026 and are 56% off their record from June 2024. The rest of the year may tell a different story.

Here's what history says the fourth quarter will bring for this restaurant stock.

Image source: The Motley Fool.

Past trends reveal mixed performance This decade, the performance of Chipotle's shares has been up and down in Q4. In the fourth quarters of 2021, 2022, 2024, and 2025, the stock fell by single digits. However, in 2020 (+12%) and 2023 (+25%), shares posted double-digit returns. So far this month, they have dropped by over 4%. Q4 2026 is off to a slow start.

At the same time, the S&P 500 index has climbed almost 1%. The positive view is that by the end of this year, Chipotle will end Q4 with a strong gain. This will continue the every-three-year streak, as the fourth quarters of 2020 and 2023 saw winning results.

Navigating a weaker industry As mentioned, Chipotle shares have been cut by more than half since the summer of 2024. At that time, it was clear that the stock was extremely expensive. It traded at a price-to-earnings (P/E) ratio of 73.2. Expectations were sky-high. That's not surprising, given that net income surged 183% from first-quarter 2021 to Q1 2024. The business was hitting its stride.

In recent years, Chipotle has been rattled by weaker conditions in the industry. The fast-casual segment, and the overall restaurant sector, have seen consumers pull back, particularly among households making less than $100,000 in annual income.

Furthermore, making food at home has become a more cost-conscious decision. According to U.S. Department of Agriculture data from 2025, the value proposition of buying groceries widened compared to eating out.

In 2025, Chipotle reported a rare same-store sales (SSS) decline of 1.7%. That improved to a gain of 0.5% in Q1 and 2.2% in the second quarter (ended June 30) of this year. The leadership team expects SSS to rise in the low single digits for the full year.

Profitability has come under pressure. Costs have increased due to labor and food inflation. The unit-level operating margin was 25.2% in the most recent quarter. That's down 220 basis points from the same period last year.

In order to right the ship and position the business for faster growth, Chipotle is investing in menu enhancements, the in-store dining experience, digital reach, and marketing efforts to drive foot traffic. Capital expenditures were $397.6 billion through the first six months of 2026, up 30% year over year. This hits free cash flow directly.

CMG Chipotle Mexican Grill$30.58+$0.06 (+0.20%)

NYSE · As of 4:00 PM ET 10/15/26

The stock might be cheap for a reason It can be hard for Chipotle to attract investor interest at a time when it seems everyone is enamored by artificial intelligence stocks. These enterprises can promise faster growth and bigger gains. The Tex-Mex chain has to compete with that.

For what it's worth, Chipotle's valuation has become more attractive. The stock trades at a P/E ratio of 28.2, which is near a 10-year low. Expectations have fallen due to the company's softer financial results.

This is a high-quality business, though. Its brand is arguably the strongest in the fast-casual space. Its 4,186 company-owned stores give it tremendous scale. It keeps growing, with 350 to 370 net new openings scheduled for this year. Profits are consistent; the average quarterly operating margin in the past five years was 15.8%.

That combination should keep Chipotle on your radar. However, the future might not be as robust as the past was. Consensus analyst forecasts call for earnings per share to grow at just 8.6% per year from 2025 to 2028. This is significantly below the 21.2% annualized pace of the previous three years. Investors need to temper their expectations.

Chipotle Mexican Grill (CMG - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this Mexican food chain have returned -9.4%, compared to the Zacks S&P 500 composite's +2.1% change. During this period, the Zacks Retail - Restaurants industry, which Chipotle falls in, has lost 5.8%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Chipotle is expected to post earnings of $0.29 per share for the current quarter, representing no change from the year-ago quarter. Over the last 30 days, the Zacks Consensus Estimate has changed -0.6%.

The consensus earnings estimate of $1.14 for the current fiscal year indicates a year-over-year change of -2.6%. This estimate has changed -0.1% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $1.36 indicates a change of +19.2% from what Chipotle is expected to report a year ago. Over the past month, the estimate has changed +0.1%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Chipotle.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Chipotle, the consensus sales estimate of $3.29 billion for the current quarter points to a year-over-year change of +9.4%. The $13 billion and $14.38 billion estimates for the current and next fiscal years indicate changes of +9% and +10.6%, respectively.

Last Reported Results and Surprise HistoryChipotle reported revenues of $3.35 billion in the last reported quarter, representing a year-over-year change of +9.3%. EPS of $0.33 for the same period compares with $0.33 a year ago.

Compared to the Zacks Consensus Estimate of $3.32 billion, the reported revenues represent a surprise of +0.81%. The EPS surprise was +3.13%.

Over the last four quarters, Chipotle surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Chipotle is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Chipotle. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Image: Bigstock

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Key Takeaways Chipotle, BP and Intuitive Surgical emerge as sales growth picks amid Q3 earnings and market uncertainties.BP leads with 28.9% projected 2026 sales growth, followed by Intuitive Surgical at 16.7% and Chipotle at 9%.The stock screen emphasizes strong sales growth, cash flow above $500M, margins and attractive valuations.
U.S. equity markets have recorded solid gains so far in 2026, demonstrating resilience despite elevated Treasury yields, volatile oil prices, persistent inflation, tariff-related uncertainties and stretched technology stock valuations. The Federal Reserve’s interest rate hike and the possibility of further monetary tightening have raised concerns about tighter financial conditions. Against this backdrop, as third-quarter earnings start, investors are likely to shift their attention toward corporate earnings performance, guidance and management commentary on strategies to navigate the evolving macroeconomic and policy environment.

Therefore, the traditional approach to stock selection remains a good idea. Sales growth offers a more reliable basis for evaluating stocks than earnings-focused metrics. In this regard, stocks like Chipotle Mexican Grill, Inc. (CMG - Free Report) , BP p.l.c. (BP - Free Report) and Intuitive Surgical Inc. (ISRG - Free Report) are worth betting on.

Sales growth is a key indicator of a company’s business performance, reflecting customer demand and its ability to market products or services effectively. Consistent sales growth may signal favorable industry trends, expanding market share, strong pricing power, successful product launches or penetration into new markets and customer segments. Higher revenues can also improve operating efficiency by spreading fixed costs over a larger sales base, thereby supporting margin expansion and profitability.

However, sales growth needs to be assessed in the context of industry trends, competitive positioning, pricing dynamics, customer composition and overall economic conditions. The sustainability of growth is equally important, as recurring revenues, repeat business, volume-driven expansion and steady demand generally provide a stronger foundation than short-term gains. Companies delivering consistent and sustainable revenue growth are typically better equipped to maintain healthy cash flows, fund future investments, strengthen their competitive positions and generate long-term shareholder value.

Selecting the Potential Winning StocksTo shortlist stocks with impressive sales growth and a high cash balance, we have selected 5-Year Historical Sales Growth (%) greater than X-Industry and Cash Flow of more than $500 million as our main screening parameters.

But sales growth and cash strength are not the absolute criteria for selecting stocks. Hence, we have added other factors to arrive at a winning strategy.

P/S Ratio less than X-Industry: This metric determines the value placed on each dollar of a company’s revenue. The lower the ratio, the better it is for picking a stock since the investor is paying less for each unit of sales.

% Change F1 Sales Estimate Revisions (four weeks) greater than X-Industry: Estimate revisions, better than the industry, are often seen to trigger an increase in stock price.

Operating Margin (average last five years) greater than 5%: The operating margin measures how much every dollar of a company's sales translates into profits. A high ratio indicates that the company has good cost control and sales are increasing faster than costs — an optimal situation.

Return on Equity (ROE) greater than 5%: This metric will ensure that sales growth is translated into profits and the company is not hoarding cash. A high ROE means that the company is spending wisely and is, in all likelihood, profitable.

Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform, irrespective of the market environment. You can see the complete list of today’s Zacks #1 Rank stocks here.

3 Stocks With Robust Sales Growth to Invest InBased in Newport Beach, CA, Chipotle operates quick-casual Mexican restaurants. As of June 30, 2026, CMG had more than 4,200 restaurants across the United States, Canada, the United Kingdom, France, Germany and the Middle East.

CMG expected sales growth rate for 2026 is 9%. Chipotle carries a Zacks Rank #2 at present.

Based in London, BP operates globally in the oil and gas business. The company’s reportable segments are Oil Production & Operations, Gas & Low Carbon Energy and Customers & Products.

Its expected sales growth rate for 2026 is 28.9%. BP currently sports a Zacks Rank #1.

Headquartered in Sunnyvale, CA, Intuitive Surgical designs, manufactures and markets the da Vinci surgical system, Ion endoluminal system and related instruments and accessories. ISRG operates through three segments: Instruments and Accessories, Systems and Services.

ISRG’s sales are expected to rise 16.7% in 2026. Intuitive Surgical carries a Zacks Rank #2 at present.

Published in medical medical-devices oil-energy restaurants retail

Chipotle unveils a limited-edition, three-foot-wide, 170-liter version of its iconic takeout bag to spotlight Family Meals Family Meals are Chipotle's digital-exclusive, customizable offering designed to serve four to six people  Beginning October 13, U.S. Rewards members can enter for a chance to win a limited-edition Big Ass Chipotle Bag through the Chipotle app1 , /PRNewswire/ -- Chipotle Mexican Grill (NYSE: CMG) is giving its iconic to-go bag a Big Ass upgrade. The limited-edition Big Ass Chipotle Bag is a larger-than-life take on a brand staple, created to celebrate Family Meals, Chipotle's digital-exclusive group offering.

How to Get a Big Ass Chipotle Bag

Chipotle’s limited-edition Big Ass Chipotle Bag is a larger-than-life take on the brand’s iconic to-go bag, created to celebrate Family Meals, its digital-exclusive group offering designed to serve four to six people.

Chipotle goes big for Family Meals with the Big Ass Chipotle Bag, a three-foot-wide, 170-liter version of its iconic takeout bag. Beginning October 13, U.S. Rewards members can enter for a chance to win one through the Chipotle app.

Measuring 36 inches wide, 24 inches tall and 12 inches deep, the limited-edition Big Ass Chipotle Bag reimagines Chipotle’s iconic takeout bag at a massive scale.

Chipotle’s Big Ass Chipotle Bag was created to celebrate Family Meals, the brand’s digital-exclusive, customizable offering designed to serve four to six people.

At three feet wide with a 170-liter capacity, Chipotle’s Big Ass Chipotle Bag is large enough to fit everything from a trumpet and traffic cone to a Chipotle chair.

Chipotle Mexican Grill, Inc. Beginning today, Chipotle will give Rewards members in the U.S. the chance to win a Big Ass Chipotle Bag through a multi-week digital sweepstakes. Each week, winners will be selected from Rewards members who purchase a Family Meal through the Chipotle app or Chipotle.com automatically entered for a chance to win.1

To order a Family Meal, visit https://www.chipotle.com/.

The Biggest Bag in Chipotle History

A big meal called for a much bigger bag. With a 170-liter capacity, the Big Ass Chipotle Bag measures 36 inches wide, 24 inches tall and 12 inches deep.

"A Big Ass Meal deserves a Big Ass Bag," said Fernando Machado, Chief Brand Officer at Chipotle. "We took one of the most recognizable parts of the Chipotle experience, gave it an outsized upgrade, and created something that's impossible to miss. It's fun, it's ridiculous and it's exactly the kind of thing we knew our fans would want to get their hands on."

Chipotle for the Whole Crew 

Previously known as Build-Your-Own Chipotle, Family Meals give groups everything they need to build their own Chipotle entrees. Guests can create bowls, tacos, salads, nachos and more with their choice of proteins, toppings and sides.

"Group occasions are a growing part of our business, and Family Meals give guests more ways to enjoy Chipotle together," said Stephanie Perdue, Senior Vice President, Brand Marketing at Chipotle. "With enough food to serve four to six people, it's a convenient option for dinner, game days and all the moments when everyone wants something a little different."

At less than $10 per person, Family Meals offer abundant portions with convenient pickup or delivery. Guests can order through the Chipotle app, Chipotle.com or Chipotle.ca, with pickup available in as few as 10 minutes.

Behind the Big Ass Bag

The Big Ass Chipotle Bag will star in a new national advertising campaign, marking Chipotle's first major work with agency partner GUT. 

The campaign gives Chipotle's iconic takeout bag a high-fashion treatment, pairing it with unexpected items including a trumpet, Christmas tree and Chipotle chair to emphasize its outsized proportions. The idea taps into the power of fandom, turning a familiar piece of packaging into a cultural artifact that fans can experience, share and keep long after their meal is over.

"The fun of this idea is how little explaining it needs," said Ricky Casal, Chief Creative Officer at GUT Miami. "You see this ridiculously oversized Chipotle bag and immediately get the joke. We leaned into that simplicity, treating it like a luxury object and letting the scale do the storytelling."

Watch the campaign here: https://youtu.be/DLaNMt6xjTw (Chipotle: Big Ass Bag), https://youtu.be/vpy_EcHtc6M (Chipotle: Big A** Bag)

Photo and video assets are available here: https://www.dropbox.com/scl/fo/kd4mll1su87o629jxl4kk/AKprKpPL-wlRvYdmFgN6WYs?rlkey=9vfpe0fvp95weuo6cjsvc8b8w&st=iif2vg8u&dl=0

1 – NO PURCHASE NECESSARY. Open to legal residents of the 50 U.S. & D.C., 13+. Sweepstakes Period: 10/13/26 at 12:01 a.m. PT – 11/10/26 at 11:59 p.m. PT. For Official Rules including how to enter, free entry method, entry limitations, odds, prize descriptions, & complete details visit chipotle.com/giveaway. Sponsor: CMG Strategy Co., LLC.

About Chipotle
Chipotle Mexican Grill, Inc. (NYSE: CMG) is cultivating a better world by serving responsibly sourced, classically-cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives. There are over 4,200 restaurants as of June 30, 2026, in the United States, Canada, the United Kingdom, France, Germany, and the Middle East and it is the only restaurant company of its size that owns and operates all its restaurants in the United States, Canada and Europe. With nearly 140,000 employees passionate about providing a great guest experience, Chipotle is a longtime leader and innovator in the food industry. Chipotle is committed to making its food more accessible to everyone while continuing to be a brand with a demonstrated purpose as it leads the way in digital, technology and sustainable business practices. For more information or to place an order online, visit www.chipotle.com. 

SOURCE Chipotle Mexican Grill, Inc.

The past week has been a rollercoaster ride for Starbucks (SBUX +1.53%) and Chipotle (CMG -4.00%) shareholders. Rumors emerged late last week that the coffee purveyor was considering a takeover bid for the fast-casual chain. The reports sent Chipotle stock higher, while Starbucks shares tumbled.

Starbucks took the unusual step to address the rumors early Monday, putting an end to the speculation.

Image source: The Motley Fool.

Will they or won't they?In a widely reported statement, Starbucks refuted the reports. "As a matter of policy, we don't comment on rumors and speculation, but we want to be clear we are not buying Chipotle," a Starbucks spokesperson said.

"Our team is laser-focused on executing our Back to Starbucks strategy," they said, referring to the company's ongoing turnaround efforts. The spokesperson added that the company was looking forward to sharing its latest financial results with investors later this month.

The source of the scuttlebuttRumors swirled late last week after a report surfaced that Starbucks was considering a buyout of Chipotle in a deal that would have marked the largest takeover ever in the restaurant industry. A report that first appeared in the Financial Times suggested the company had engaged advisors to explore a potential tie-up, sending ripples through the space.

A statement by Starbucks at the time -- which may sound familiar -- only added fuel to the fire. "Our team is laser-focused on executing our 'Back to Starbucks’ strategy. We have strong momentum and confidence in our long-term growth potential." Since the statement didn't directly address the rumors, investors were left to draw their own conclusions.

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Bigger isn't always betterChipotle's market cap of roughly $38 billion (as of this writing) would make any acquisition pricey and potentially difficult to digest. Moreover, a deal of this magnitude would have created a $143 billion restaurant behemoth, but the jury was still out on whether either company would have benefited from the tie-up.

Stephens analyst Jim Salera noted that 90% of U.S. Chipotle locations are within 1 mile of the nearest Starbucks. He suggested the pair could benefit from shared real estate and potential operating efficiencies.

On the other hand, Melius Research analyst Jacob Aiken-Phillips suggested that at first glance, "it doesn't seem like there are that many synergies for something like this to happen." He acknowledged that Starbucks CEO Brian Niccol had "intimate knowledge" of Chipotle's operations as the company's former chief executive, but wondered aloud if "there's actually anything to be gained."

Citi Research analyst Jon Tower went further, noting that two-brand restaurant locations struggle to generate meaningful same-store sales growth, questioning the rationale behind such a deal.

What the future holds for Starbucks and Chipotle investorsNiccol was brought in to spearhead Starbucks' turnaround roughly two years ago, and those efforts are beginning to bear fruit. For its fiscal 2026 third quarter (ended June 28), Starbucks' revenue declined just 1% year over year to $9.3 billion, though that includes the recent spin-off of its operations in China. This resulted in earnings per share (EPS) of $0.91, up 86%.

Moreover, its comparable store sales (comps) climbed 7.9%, driven by a 4.2% increase in transactions and a 3.5% increase in average ticket. So customers are visiting Starbucks more often and spending more when they do.

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This ongoing success suggests that Starbucks investors would be better served by Niccol's continued focus on the company's turnaround, unhampered by the distraction of an ill-timed acquisition. 

For its part, Chipotle has struggled since Niccol traded teams two years ago. Weakening consumer sentiment, persistent wage inflation, and higher food costs have weighed on the stock. The company's strategy, dubbed ‘Recipe for Growth,’ has also been gaining traction. In the second quarter, revenue increased 9% to $3.3 billion, though diluted EPS was flat at $0.32.

Comps rose 2.2%, driven by transactions that rose 1% and a 1.2% increase in the average ticket. CEO Scott Boatwright said this illustrates that Chipotle is focused on the right growth drivers, which will lead to "sustainable long-term growth and shareholder value."

To buy or not to buy?While reports of a marriage between Starbucks and Chipotle were certainly intriguing, investors shouldn't make long-term investment decisions based on rumors. Each company is making headway in their respective turnaround efforts and has a long track record of success -- albeit with a few bumps along the way.

Starbucks is further along in its turnaround efforts, which is reflected in its valuation. The stock is currently selling for 53 times earnings and 29 times forward earnings. For its part, Chipotle is the better value, selling for 28 times earnings and 26 times forward earnings.

This allows astute investors to pick up Chipotle shares at a discount, before its turnaround gains additional traction.

U.S. stocks traded mixed midway through trading, with the Dow Jones index gaining over 200 points on Monday.

The Dow traded up 0.47% to 51,895.66 while the NASDAQ fell 0.19% to 27,313.54. The S&P 500 also rose, gaining, 0.04% to 7,814.93.

Leading and Lagging Sectors

Energy shares jumped by 1.9% on Monday.

In trading on Monday, information technology stocks fell by 0.6%.

Top Headline

Chipotle Mexican Grill Inc. (NYSE:CMG) shares fell around 4% on Monday after Starbucks Corporation (NASDAQ:SBUX) denied that it is considering acquiring the fast-casual chain.

According to CNBC, a Starbucks spokesperson told CNBC’s Jim Cramer, “Starbucks is not buying Chipotle.” The denial follows days of rumors about what would be the biggest restaurant takeover ever.

Equities Trading UP
           

First Tracks Biotherapeutics, Inc. (NASDAQ:TRAX) shares shot up 13% to $36.09 after the company released topline results from Cohort 1 of its Phase 1b clinical trial of ANB033 in celiac disease. Shares of J-Star Holding Co Ltd (NASDAQ:YMAT) got a boost, surging 60% to $2.0601 after the company announced its ongoing corporate capital initiatives will fund the planned U.S. expansion for drone frame manufacturing. Euro Tech Holdings Company Ltd (NASDAQ:CLWT) shares were also up, gaining 57% to $2.14 after the company announced its entry into Norway through a 50/50 JV agreement between Sea Clean and its subsidiary, Euro Tech Global. Equities Trading DOWN

Service Properties Trust (NASDAQ:SVC) shares dipped 8% to $6.61. Service Properties Trust confirmed unsolicited $2.0 billion cash proposal from TKO to acquire its hospitality portfolio. Shares of China SXT Pharmaceuticals Inc (NASDAQ:SXTC) were down 31% to $0.10. Univest Securities, LLC announced closing of $12 million registered direct offering for its client China SXT Pharmaceuticals. TTM Technologies, Inc. (NASDAQ:TTMI) was down, falling 7% to $112.90. TTM Technologies announced $400 million in planned strategic investments to accelerate AI infrastructure capacity in China and Malaysia. Commodities

In commodity news, oil traded up 2.1% to $93.77 while gold traded down 0.5% at $4,195.40.

Silver traded down 0.4% to $60.810 on Monday, while copper rose 1.2% to $6.7730.

Euro zone

European shares were higher today. The eurozone’s STOXX 600 rose 0.5%, while Spain’s IBEX 35 Index gained 0.9%, London’s FTSE 100 rose 0.7%, Germany’s DAX gained 0.8%, while France’s CAC 40 gained 0.2%.

Asia Pacific Markets

Asian markets closed mixed on Monday, with Hong Kong’s Hang Seng Index jumping 0.25%, China’s SSE Composite Index falling 0.43% and India’s BSE Sensex falling 0.76%.

Economics

No major economic reports are scheduled for release today.

Photo via Shutterstock

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Chipotle Mexican Grill Inc. (NYSE:CMG) shares are trading lower Monday after Starbucks Corporation (NASDAQ:SBUX) denied that it is considering acquiring the fast-casual chain.

Chipotle shares are under pressure. What’s pulling CMG shares down?
According to CNBC, a Starbucks spokesperson told CNBC’s Jim Cramer, "Starbucks is not buying Chipotle." The denial follows days of rumors about what would be the biggest restaurant takeover ever. The Financial Times reported Thursday, citing people familiar with the matter, that Starbucks had been working with advisers on a takeover proposal for Chipotle in recent months. Semafor reported earlier in October that Chipotle had hired advisers to defend against activist investors or an unwanted takeover bid.

Why the Deal Talk Mattered for Both StocksThe deal rumors sent Chipotle shares higher and Starbucks shares lower. Chipotle is trying to recover from a rocky 2025, when traffic to its restaurants fell, and its shares are down about 20% over the last year, which made it a cheaper target. Chipotle investors were looking forward to a potential reunion with Brian Niccol, who previously led Chipotle and is now CEO of Starbucks. Starbucks shareholders were largely concerned about an expensive distraction while the coffee chain is in the middle of its own turnaround.

Read Next

Chipotle Shares Edge LowerCMG Price Action: At the time of publication, Chipotle shares are trading 4.02% lower at $30.33, according to data from Benzinga Pro.

Image via Shutterstock

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

A potential acquisition could add shareholder value in several key ways.

*Stock prices used were the afternoon prices of Oct. 8, 2026. The video was published on Oct. 10, 2026.

Parkev Tatevosian, CFA has positions in Chipotle Mexican Grill. The Motley Fool has positions in and recommends Chipotle Mexican Grill and Starbucks. The Motley Fool recommends the following options: short December 2026 $38 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

In the latest close session, Chipotle Mexican Grill (CMG - Free Report) was down 3.15% at $31.65. This move lagged the S&P 500's daily gain of 0.6%. At the same time, the Dow added 0.83%, and the tech-heavy Nasdaq gained 0.64%.

Heading into today, shares of the Mexican food chain had lost 9.55% over the past month, lagging the Retail-Wholesale sector's loss of 1.58% and the S&P 500's gain of 1.34%.

The investment community will be closely monitoring the performance of Chipotle Mexican Grill in its forthcoming earnings report. The company is scheduled to release its earnings on October 28, 2026. It is anticipated that the company will report an EPS of $0.29, marking stability compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.29 billion, up 9.39% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.14 per share and a revenue of $13 billion, signifying shifts of -2.56% and +8.97%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Chipotle Mexican Grill. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.06% lower. Chipotle Mexican Grill is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Chipotle Mexican Grill is presently being traded at a Forward P/E ratio of 28.54. This expresses a premium compared to the average Forward P/E of 20.1 of its industry.

We can additionally observe that CMG currently boasts a PEG ratio of 2. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 1.74.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 42% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

This is CNBC's Morning Squawk newsletter. Subscribe here to receive future editions in your inbox.

Happy Friday. Don't miss Federal Communications Commission Chairman Brendan Carr on "Squawk on the Street" at 11 a.m. ET. Watch live on CNBC or CNBC+.

Stock futures are higher this morning following a losing day for the S&P 500.

Here are five key things investors need to know to start the trading day:

1. Open questionsOpenAI told investors that its annualized revenue at the end of September was roughly $18 billion shy of what was previously reported, CNBC confirmed yesterday. The news from one of the most dominant players in the artificial intelligence ecosystem led stocks across the tech sector to slide.

Here's what to know:

As CNBC's Ashley Capoot and Kate Rooney write, the new details on OpenAI's revenue come as the company faces pressure to justify its enormous valuation ahead of its potential IPO.Shares of CoreWeave sank nearly 8%, shares of Oracle dropped almost 6% and Nvidia shares fell 3% following the news. Advanced Micro Devices, Broadcom, Intel and Super Micro Computer also all closed lower.The drop in AI names pushed the technology-heavy Nasdaq Composite down more than 1%, its worst day since mid-August. The index is still close to record levels after hitting fresh all-time highs earlier this week.SpaceX is a bright spot for the tech sector this morning. Shares of the company are climbing after it announced a deal to purchase a nationwide spectrum portfolio as it looks to take on the U.S. telecommunications market.Follow live market updates here.2. Political calendarPresident Donald Trump said yesterday that the U.S. would not attack Iran before the midterm election on Nov. 3, writing in a post on Truth Social that the two countries were having "productive discussions."

As CNBC's Luke Fountain reports, the announcement marked a shift from Trump's comments a day prior, in which he said making a deal with Tehran was "not really something that I wanted to do." Trump said Thursday that the U.S. naval blockade of Iran's ports would "remain in full force and effect" and maintained that the country wouldn't be able to have a nuclear weapon.

Oil prices still finished yesterday's session higher.

3. Squeezed marginsMom-and-pop investors are getting in on Wall Street's stock-borrowing surge. CNBC's Sean Conlon traveled to Houston, Texas to see how it changed one retail trader's life.

Hy Luu has turned to margin investing — the practice of borrowing from a broker to buy securities and using existing investments as collateral — to build out a concentrated Tesla position. When the stock tumbled in 2022, he refinanced the house he shares with his mother to pay down his balance.

Investors are reportedly borrowing record levels of money from brokerages to purchase securities. Experts warn that margin is a double-edged sword: While it can intensify gains, a falling asset can deepen losses seen by shareholders.

4. TurbulenceDelta Air Lines missed Wall Street's earnings estimates for the first time in two years this morning. The airline also cut its full-year profit outlook as high fuel prices from the Iran war continue to weigh on the industry.

Airfare prices were up more than 23% from the same time a year earlier, according to inflation data released in September, but Delta CEO Ed Bastian said higher fares haven't deterred travelers. "We're not seeing any slowdown at all. Our consumer is incredibly resilient," Bastian told CNBC's Phil LeBeau this morning.

Shares of the company are about 2% lower before the bell.

5. Chip off the old buck?Burritos with a side of ... cold foam? Starbucks has reportedly explored buying Chipotle Mexican Grill, but Wall Street isn't certain it'd be a good deal.

As CNBC's Amelia Lucas writes, such an acquisition has the potential for synergies and could create a conglomerate like Yum Brands or Restaurant Brands International. But the price of the acquisition — and the fact that Starbucks is currently in the midst of a yearslong turnaround — are drawbacks. Don't forget that Starbucks CEO Brian Niccol joined the coffee chain in 2024 following six years at the helm of Chipotle.

Shares of Chipotle rose 6% yesterday following the report, while Starbucks pulled back.

The Daily Dividend

Grove Bank & Trust lifted its holdings in shares of Chipotle Mexican Grill, Inc. (NYSE:CMG – Free Report) by 1,416.7% in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 19,383 shares of the restaurant operator’s stock after acquiring an additional 18,105 shares during the quarter. Grove Bank & Trust’s holdings in Chipotle Mexican Grill were worth $619,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also bought and sold shares of CMG. Farther Finance Advisors LLC boosted its holdings in shares of Chipotle Mexican Grill by 705.3% in the 3rd quarter. Farther Finance Advisors LLC now owns 205,561 shares of the restaurant operator’s stock worth $6,568,000 after buying an additional 180,035 shares during the last quarter. CoreCap Advisors LLC raised its position in Chipotle Mexican Grill by 96.8% in the third quarter. CoreCap Advisors LLC now owns 102,803 shares of the restaurant operator’s stock worth $3,285,000 after acquiring an additional 50,573 shares during the period. Atwood & Palmer Inc. boosted its stake in Chipotle Mexican Grill by 1,866.7% in the third quarter. Atwood & Palmer Inc. now owns 22,617 shares of the restaurant operator’s stock valued at $723,000 after acquiring an additional 21,467 shares during the last quarter. YHB Investment Advisors Inc. boosted its stake in Chipotle Mexican Grill by 13.5% in the third quarter. YHB Investment Advisors Inc. now owns 64,513 shares of the restaurant operator’s stock valued at $2,061,000 after acquiring an additional 7,658 shares during the last quarter. Finally, Titleist Asset Management LLC grew its position in shares of Chipotle Mexican Grill by 5.2% during the 3rd quarter. Titleist Asset Management LLC now owns 51,666 shares of the restaurant operator’s stock valued at $1,651,000 after acquiring an additional 2,548 shares during the period. Hedge funds and other institutional investors own 91.30% of the company’s stock.

Analyst Upgrades and Downgrades Several equities analysts recently commented on the company. Robert W. Baird reiterated a “neutral” rating and issued a $40.00 price objective (down from $44.00) on shares of Chipotle Mexican Grill in a research note on Monday, August 24th. BTIG Research reissued a “buy” rating and issued a $45.00 target price on shares of Chipotle Mexican Grill in a research report on Wednesday, August 5th. TD Cowen reaffirmed a “buy” rating and set a $44.00 price target on shares of Chipotle Mexican Grill in a research report on Thursday, July 30th. Stephens reiterated a “positive” rating and set a $40.00 price target (up from $36.00) on shares of Chipotle Mexican Grill in a research note on Thursday, July 30th. Finally, UBS Group reissued a “buy” rating on shares of Chipotle Mexican Grill in a report on Friday, July 31st. Twenty-three analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $43.91.

Get Our Latest Analysis on Chipotle Mexican Grill Insider Transactions at Chipotle Mexican Grill In other Chipotle Mexican Grill news, insider Matthew R. Bush sold 2,675 shares of the firm’s stock in a transaction on Friday, August 21st. The shares were sold at an average price of $35.75, for a total value of $95,631.25. Following the completion of the transaction, the insider directly owned 21,415 shares of the company’s stock, valued at $765,586.25. This trade represents a 11.10% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.45% of the stock is owned by corporate insiders.

More Chipotle Mexican Grill News Here are the key news stories impacting Chipotle Mexican Grill this week:

Positive Sentiment: A potential acquisition by Starbucks (NASDAQ: SBUX) could value Chipotle at roughly $39 billion, based on its current market capitalization, and would likely involve a takeover premium. The prospect of a major strategic buyer has fueled investor interest and lifted CMG shares. Why a Starbucks takeover of Chipotle would — and wouldn’t — make sense for both companies Positive Sentiment: Chipotle’s planned national catering rollout in 2027 could create an additional sales channel, supported by encouraging pilot results and stronger demand for family meals. This provides a longer-term growth opportunity beyond restaurant openings. Can Chipotle’s 2027 Catering Launch Unlock a New Sales Engine? Neutral Sentiment: The takeover remains exploratory and could ultimately go nowhere. Analysts and investors are weighing whether Starbucks should devote substantial financial resources to a large acquisition outside its core coffee business, while also considering potential operating and brand synergies. Chipotle Stock Gains on Starbucks Takeover Proposal Report. Does a Deal Make Sense? Negative Sentiment: Before the takeover speculation, Chipotle’s momentum had weakened: its recent share performance was negative and promotional marketing campaigns have not addressed concerns about slowing growth. The stock could therefore remain sensitive to valuation and execution risks if deal discussions fade. Is Chipotle Mexican Grill Fully Valued As Halloween Marketing Ramps Up? Shares of NYSE CMG opened at $32.64 on Friday. The company has a market cap of $41.30 billion, a P/E ratio of 29.94, a P/E/G ratio of 1.88 and a beta of 0.96. Chipotle Mexican Grill, Inc. has a 52 week low of $28.03 and a 52 week high of $42.81. The business has a 50-day simple moving average of $34.50 and a two-hundred day simple moving average of $33.55.

Chipotle Mexican Grill (NYSE:CMG – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The restaurant operator reported $0.33 earnings per share for the quarter, beating the consensus estimate of $0.32 by $0.01. Chipotle Mexican Grill had a return on equity of 54.65% and a net margin of 11.43%.The firm had revenue of $3.35 billion for the quarter, compared to analysts’ expectations of $3.33 billion. During the same period in the prior year, the business posted $0.33 earnings per share. The company’s revenue was up 9.3% on a year-over-year basis. Equities research analysts anticipate that Chipotle Mexican Grill, Inc. will post 1.14 EPS for the current year.

Chipotle Mexican Grill Profile (Free Report)

Chipotle Mexican Grill, Inc is a fast-casual restaurant company that specializes in Mexican-inspired food made with a limited number of core ingredients. Its menu includes burritos, burrito bowls, tacos, quesadillas, salads and sides, with options such as chicken, steak, barbacoa, carnitas, sofritas and vegetables. The company also offers beverages, including soft drinks and other drinks, and allows customers to customize meals.

Founded by Steve Ells in 1993, Chipotle operates company-owned restaurants under the Chipotle Mexican Grill brand.

Read More Five stocks we like better than Chipotle Mexican Grill Want Private-Market Access to Kalshi and Polymarket? Try This ETF Levi’s Stock Dip Reveals Value Opportunity Despite Q3 Headwinds PepsiCo Stock Looks Poised to Bottom With High Yield, Deep Value Alphabet’s $1.8 Billion Black Hills Deal Powers AI Data Center Push Want to see what other hedge funds are holding CMG? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Chipotle Mexican Grill, Inc. (NYSE:CMG – Free Report).

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Chipotle Mexican Grill (CMG) is experiencing a surge in its stock price following reports that Starbucks (SBUX) is exploring a potential acquisition. This news

Starbucks has reportedly explored buying Chipotle Mexican Grill, but investors are split on whether the megadeal would make sense for both companies.

The coffee giant has been working with advisers on a takeover proposal of the fast-casual chain in recent months, the Financial Times reported on Thursday, citing people familiar with the matter.

If Starbucks bought Chipotle, it would combine two of the largest U.S. restaurant chains. With about $31 billion in annual domestic sales, Starbucks is the second-biggest U.S. chain by sales. Chipotle sits in the number seven spot, with more than $11 billion in annual system-wide sales in its home market.

The report sent Chipotle stock up about 6% on Thursday, while shares of Starbucks fell slightly after dropping more sharply earlier in the day. It is not unusual for deal rumors to lower the potential acquirer's value and increase the target's share price, but investor reactions show that a prospective takeover comes with pros and cons for each side of the deal.

To be sure, it is unclear if Starbucks will even pursue the takeover. D.A. Davidson analyst Matt Curtis wrote in a note to clients on Thursday that he views the odds of a deal being completed as "relatively low" — about 20%.

A Starbucks spokesperson told CNBC that the company does not comment on rumors and speculation. Chipotle did not immediately respond to a request for comment from CNBC.

Why it makes sense:1. The Niccol connectionStarbucks CEO Brian Niccol knows more than a thing or two about Chipotle.

Before joining the coffee company in 2024, he was chief executive of Chipotle for more than six years. He led a turnaround of the burrito chain, helping it bounce back from a series of foodborne illness outbreaks that had turned into a full-blown crisis for the company.

In the wake of Niccol's departure, traffic to Chipotle restaurants fell in 2025, as budget-conscious consumers visited its restaurants less often. These days, the chain looks like it is starting to get back on track, with signs of "encouraging progress," Chipotle CEO Scott Boatwright said on the company's earnings conference call in late July.

Still, its shaky 2025 means that the stock is trading at a 20% discount from a year ago, even with Thursday's big move. And since Niccol left, shares have lost about 40% of their value.

2. Building the next YumChipotle would be a splashy acquisition for Niccol. More than that, it could create a new restaurant conglomerate, following in the footsteps of Yum Brands, Restaurant Brands International and Roark Capital-backed Inspire Brands.

Multi-brand restaurant companies are more diversified, which can be more attractive to investors. While Starbucks is still a much larger chain than Chipotle, the difference in their categories means that one's poor performance could be offset by growth at the other.

Moreover, Starbucks could help Chipotle grow more quickly in international markets; the burrito chain only has about 100 locations outside of the U.S., while Starbucks has about 23,000.

Other restaurant companies have set a blueprint for that strategy: Yum has leaned on its international experience from KFC and Pizza Hut to launch Taco Bell outside of the U.S. And Restaurant Brands has leaned on Burger King's international expertise to grow Popeyes' international footprint.

3. Potential synergiesWith any strategic acquisition, investors hope for synergies that justify the price tag and explain why the deal makes sense. A coffee shop and a burrito restaurant do not have much overlap in ingredients, but there are other potential benefits for both companies and their investors.

Combining Starbucks and Chipotle would open up potential cost cuts, like layoffs for some now-redundant corporate roles.

The two chains also have significant overlap in their U.S. real estate footprints. Roughly 90% of Chipotle restaurants are within one mile of a Starbucks cafe, according to a research note from Stephens analyst Jim Salera published on Thursday. Both companies could benefit from shared real estate development and even operating efficiencies as a result.

But real estate is not the only area where they overlap. Many Starbucks customers also frequent Chipotle restaurants. As one entity, they could leverage that overlap through a combined rewards program, Salera suggested.

4. Alignment in business modelUnlike many big restaurant players, both Chipotle and Starbucks operate most of their U.S. locations, although Starbucks also has thousands of licensed cafes in its home market.

That marks a difference from Chipotle's last strategic owner — McDonald's.

The burger giant, which franchises the vast majority of its U.S. restaurants, made a majority investment in the upstart Mexican-inspired chain in 1998. But by 2006, McDonald's divested its ownership. Its restaurant investments, which also included Boston Market, were labeled a distraction by Wall Street as the Golden Arches struggled.

Before it sold its stake, McDonald's tried to franchise some of Chipotle's restaurants to its own franchisees. But Chipotle's leadership, including founder Steve Ells, pushed back. It was one sign of the cultural misalignment between the two brands.

Chipotle also resisted efforts to make it more similar to McDonald's, declining suggestions like adding drive-thru windows and a breakfast menu.

Why it doesn't make sense: 1. Starbucks' ongoing turnaroundNiccol joined Starbucks more than two years ago to lead a turnaround of the embattled coffee chain. Early signs show that his efforts have improved its U.S. business — but the company is not done yet. Starbucks is aiming to be "the world's greatest customer service company," Niccol wrote in a memo to employees in September, part of a broader push to improve customer loyalty.

Starbucks also has other deals that it is reportedly considering. In September, Reuters reported that the company was considering selling a majority stake in its Japan business. The country has been the chain's largest overseas company-operated market since it formed a joint venture to operate its cafes in China less than a year ago.

Integrating a new chain into the company would be a big distraction for Starbucks at a time when many investors think it should still be focusing on itself.

"Starbucks is still executing its turnaround strategy, and acquiring Chipotle could consume significant senior management time on financing, integration, organizational design, systems, and personnel," BTIG analyst Pete Saleh wrote in a note. "Why introduce another major strategic initiative before demonstrating that Starbucks can deliver sustainable margin recovery?"

2. The price tagStarbucks' turnaround has also been expensive, which hasn't pleased investors.

The company has been investing heavily in labor, cafe makeovers and store equipment to improve its service and the overall customer experience. Even layoffs and store closures, which will cut costs in the long term, have weighed on its quarterly earnings.

But Chipotle would be an even bigger expense. Even with shares' recent struggles, the company still has a market cap of roughly $42 billion. If Starbucks pursues the acquisition, it would be the biggest-ever restaurant takeover.

Starbucks had about $9.4 billion in debt at the end of June. William Blair analyst Sharon Zackfia estimated that its leverage would balloon to about six times if the company paid a 20% premium and sought to finance the potential deal primarily through debt. An all-stock deal would not weigh on earnings as much, although Zackfia estimates it would still dilute earnings per share by about 10%.

3. Niccol's experienceAt Chipotle and Starbucks, Niccol was tasked with turning around struggling restaurants. But his corporate experience so far has not prepared him for a deal of this size.

Merging two colossal restaurant companies would be a massive undertaking, potentially at the expense of the individual success of both brands.

Two-brand restaurant companies often struggle to keep both operating with same-store sales growth, Citi Research analyst Jon Tower wrote in a note to clients. Additionally, he said internal employees usually gravitate toward the brand that is perceived to perform better or offer more career opportunities.

While the size of the deal makes the takeover unique, the restaurant industry already has plenty of examples of mergers and takeovers that did not work for either party.

The latest example comes from Jack in the Box, which bought Del Taco in a $585 million deal in 2022. At the time that the deal was announced, executives said it was "strategically and financially compelling."

During the period that Jack in the Box officially owned Del Taco, shares of the company cratered 73%. The burger chain shuttered dozens of locations as its sales struggled. And Del Taco reported even worse results, including more than a year straight of quarterly same-store sales declines.

More than three years later, Jack in the Box sold Del Taco to a franchisee for about $119 million.

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Listen below or on the go on Apple Podcasts and Spotify

Combo would be a restaurant megadeal. (0:14) PepsiCo flags North America, beverage concerns. (1:10) Chick-fil-A says no thanks to AI drive-thru. (2:06)

This is an abridged transcript of the podcast:

Our top story so far, Chipotle Mexican Grill (CMG) is up after a report that Starbucks (SBUX) has explored a takeover of the chain.

Starbucks shares are lower, as is typical for potential acquirers in these reports.

Starbucks has worked with advisers in recent months on an offer for Chipotle, according to the Financial Times.

The status of the takeover plans and whether Starbucks has submitted a formal offer couldn't be determined.

A deal of this size may never materialize, sources told the FT.

The news comes after a report earlier this week from Semafor that raised the possibility that the two chains could merge and run operations similar to Yum! Brands (YUM), which operates KFC, Pizza Hut and Taco Bell.

Last week, Chipotle reportedly enlisted bankers to fend off a potential buyout.

My podcast editor tells me that coffee rubs work beautifully with Mexican cuisine, particularly with beef, pork and slow-cooked meats.

Coffee's roasted bitterness and earthy depth complement several pillars of Mexican cooking: dried chiles, cumin, garlic, oregano and chocolate.

Among other active stocks, PepsiCo (PEP) topped Q3 top- and bottom-line estimates, but business was stronger outside North America, with overall core operating margin contracting 35 basis points.

CEO Ramon Laguarta said the company does not feel good about how the beverage business is doing and will be looking to cut costs “to help fund investments that aim to accelerate organic revenue growth and mitigate the impacts of rising input cost inflation.”

Goldman Sachs upgraded Palantir (PLTR) to Buy from Neutral with a $230 price target.

Analyst Gabriela Borges said that based on industry conversations, the stock is “setting up for another phase of outperformance into 2027.”

And JPMorgan says software stocks are likely to extend their recent rally as Q3 earnings are set to provide evidence that AI demand is supporting infrastructure software while easing concerns about disruption to application software.

JPMorgan favors Microsoft (MSFT), ServiceNow (NOW), Snowflake (SNOW) and Cloudflare (NET) heading into reporting season.

In other news of note, it’s Chick-fil-A, not Chick-fil-AI, buddy.

Fast-food chain Chick-fil-A is taking a stand against AI-powered drive-thru order takers, noting human hospitality matters more than automating the conversation.

CEO Andrew Cathy made it clear in comments to CNBC that the chain has no plans to replace employees with voice AI.

“From our experience, we really want that hospitality to be human to human,” he said.

And in the Wall Street Research Corner, UBS is highlighting its basket of companies with higher forward growth, stronger cash-flow profitability and improving earnings momentum, arguing that valuations for some of these stocks do not fully reflect their underlying fundamentals.

Stocks in its higher growth and cash flow return on investment at a discount basket include eBay (EBAY), Maplebear (CART), Micron (MU), Microsoft (MSFT) and Uber (UBER).

See all the names in the basket in our story.

Starbucks Corp (NASDAQ:SBUX, XETRA:SRB) shares fell over 3% to $90.40 on Thursday after the Financial Times (FT) reported that the coffee chain had worked with advisers in recent months on a potential takeover of Chipotle Mexican Grill.

The shares fell as much as 6% after the report, before paring losses as investors assessed the potential financial implications of a deal that could be worth about $39 billion based on Chipotle's current market value.

Shares of Chipotle, however, gained nearly 6.5% on the news.

The status of Starbucks' plans remains unclear, including whether the company has made a formal offer, while a transaction of this size may never progress, according to people familiar with the matter cited by the FT.

Starbucks' declining share price could complicate the financing of any transaction if the company were to use its stock as part of the consideration, while a rise in Chipotle's shares would increase the potential acquisition cost.

The report carries greater weight than previous speculation about a possible combination, including an earlier report from Semafor that was largely dismissed by investors at the time.

A potential acquisition would reunite Starbucks chief executive Brian Niccol with Chipotle, where he served as chief executive for six years before leaving to lead Starbucks in August 2024.

Niccol oversaw a period of rapid growth at Chipotle, while the company's shares have nearly halved in value since he left, creating a potentially more attractive valuation for a buyer despite Thursday's rally.

The proposed transaction would also represent a major expansion for Starbucks beyond its core coffee business and could create a restaurant group with nearly $50 billion in combined annual sales based on last year's figures.

Starbucks operates about 41,000 company-owned and licensed stores globally, while Chipotle has roughly 4,200 restaurants, almost all of them in the US.

Investors appeared to view the potential transaction negatively for Starbucks, with the shares falling sharply as the market weighed the size of the deal and the uncertainty over whether a formal bid would emerge.