Bernstein SocGen on Chipotle Mexican Grill (CMG): 'This increasingly looks like an attractive stock to own'

Bernstein SocGen Group analyst Danilo Gargiulo reiterated an Outperform rating and $50.00 price target on Chipotle Mexican Grill (NYSE: CMG).

The analyst commented: "The 2Q26 results reinforce that Chipotle's Recipe for Growth strategy is working, with comparable sales up +2.2%, driven by +1.0% transaction growth and +1.2% avg. check growth. While we believe more work is needed to re-establish value perception and further improve operational execution, this quarter demonstrated long-awaited signs of improvement. We believe that the implied guidance of 1% SSSG in 3Q is conservative, as it embeds the impact of the industry-wide Cyclospora disruption (200bps headwind) to continue throughout the quarter, leaving room for upside once consumers gain appreciation that CMG does not use the implicated supply chain.

With underlying demand improving, growth drivers beginning to compound, and expectations still subdued, this increasingly looks like an attractive stock to own. Trading sub 30x NTM P/E, near a 10-year low, Chipotle is executing well despite a soft consumer backdrop, providing additional upside if macro conditions improve."

For an analyst ratings summary and ratings history on Chipotle Mexican Grill click here. For more ratings news on Chipotle Mexican Grill click here.

Shares of Chipotle Mexican Grill closed at $38.52 yesterday.

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