Chipotle Mexican Grill Inc. CMG shares are trading higher on Thursday after Goldman Sachs initiated coverage on the stock with a Buy rating and a price target of $3,730.
What’s Going On: Analyst Christine Cho highlighted operational improvements, such as reducing wait times and serving fresher food, both of which are increasingly valued by customers, as key factors that could drive momentum. The analyst believes throughput and consistent execution on products could drive restaurant margins near 28-29% by 2026.
Additionally, Cho noted the achievable growth of store locations in North America to 7,000 and expansion efforts in Canada as significant growth drivers.
Related Link: Wendy’s Is A ‘Show Me’ Story, Goldman Sachs Analyst Says: Fast Food Joints Like Chipotle, Domino’s Are Still Hot
The analyst also highlighted Chipotle’s product execution and menu innovation, saying the chain represents one of the best quality-to-value options for consumers.
CMG Price Action: Chipotle Mexican Grill shares were up by 2.58% at $3,252.63 at the time of writing, according to Benzinga Pro.
See Also: Is Trending Stock Chipotle Mexican Grill, Inc. a Buy Now?
Photo via Shutterstock.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
