Chipotle Bull TD Cowen Downgrades to Hold Ahead of Earnings, Cuts Price Target to Street-Low $32

TD Cowen analyst Andrew Charles downgraded Chipotle Mexican Grill Inc. (CMG) to hold from buy on Wednesday, citing a slow start to the fourth quarter that signals softer sales ahead, just before the burrito chain's earnings report next week. He cut his 12-month price target to a Street-low $32 from $44; his bear case sees shares at $25. Charles, who had held a buy-equivalent rating since 2019, lowered his fourth-quarter same-store sales growth estimate to 1% from 4%, below the 2.9% consensus. He trimmed his 2027 projection to 2.1% from 3.8%, versus the 3.1% consensus, warning the brand's reduced reliance on price increases to drive traffic leaves medium-term forecasts too high. Chipotle shares have fallen 24% this year and trade near a three-year low, among the worst performers in the S&P Composite 1500 Restaurants Index, down 6.6% in 2026. Wells Fargo cut its target to $40 from $45 on Wednesday, and Raymond James lowered its to $37 last week. Wall Street remains broadly bullish, with 23 buy-equivalent ratings, 12 holds and one sell, per Bloomberg data.