Chipotle Mexican Grill Could Benefit From The Fall In Chicken Prices, Says Analyst

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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.
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