Chipotle Mexican Grill (CMG) remains well-positioned to drive a traffic rebound and improve margins in the second half of 2025 despite macroeconomic headwinds, Oppenheimer said in a note on Tuesday.
The brokerage highlighted Chipotle's ongoing implementation of new back-of-house technology-including produce slicers, dual-sided grills, and advanced rice cookers as a key driver of future same-store sales and margin expansion.
While near-term consumer spending trends remain uncertain, Oppenheimer views the current shift toward cash preservation as temporary rather than a structural change in behavior. The firm also expects restaurant margins to improve as portion size investments are lapped and operational efficiencies take hold.
Chipotle continues to expand its footprint, with steady domestic unit growth expected as the company works toward a significantly larger US presence. The company's management is also becoming more proactive in international expansion, with just 85 locations outside the US but improving economics making global growth more viable.
The brokerage reiterated its outperform rating on Chipotle's stock, with a price target of $66.
Price: 50.20, Change: +0.60, Percent Change: +1.21
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