- Oppenheimer analyst Brian Bittner reiterated an Outperform rating on the shares of Chipotle Mexican Grill Inc CMG with a price target of $1,800.
- Bittner's analysis suggested an attractive setup for same-store sales, while consensus still overly discounted the equation for margins and EPS power through 2023.
- He further supports his analysis through accelerating unit growth and a CMG food commodity setup that appears to be improving.
- The analyst expects Chipotle to report Q3 FY22 earnings above Street estimates and believes the buyside's nervousness around Q4 FY22 trends presents an actionable opportunity.
- The fall in the prices of chicken, avocados and a slight rise in beef could enhance margin path through 2023.
- Bittner added a less bad food cost environment could drive less aggressive price increases, leading to better traffic and an improving investment narrative toward shares.
- Chipotle's accelerating unit growth in 2022 and beyond with higher return Chipotlanes appears overlooked, while International represents complete optionality, said the analyst.
- Also Read: Morgan Stanley Thinks Europe Exposure & FX Headwinds Weigh On Q3 Earnings For Restaurants
- Price Action: CMG shares are trading higher by 3.08% at $1,554.80 on the last check Monday.
- Photo Via Company
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