Why Chipotle's Burrito Is Half Full

Analysts at Oppenheimer have an Outperform rating and $775 price target on Chipotle Mexican Grill, Inc. CMG heading into next week's earnings report. The analysts noted that with the stock down 7 percent since the start of February and the market tempered, now is the time to be bullish.

Specifically, Oppenheimer said that investors' near-term fear is that strong 2014 comps will mirror a 40 percent decline in the stock that was seen in the 2012-2013 cycle. However, Oppenheimer argued that the current setup is unlike the prior cycle given that the company has a larger footprint and strong growth potential.

Related Link: Why Is Chipotle So Successful In Attracting Teens And Millennials?

One such growth potential according to the note – Pizzeria Locale. Oppenheimer pointed to competitors MOD Pizza and Blaze Pizza who are adding a combined 130 locations this year as a reason to support Chipotle's "massive growth opportunity." However, that opportunity relies on Chipotle hitting the "accelerator" on stores.

As it relates to Chipotle stores, Oppenheimer said that Wall Street consensus only has same-store sales increasing at a 5 percent rate – a number the analysts viewed as "achievable." Oppenheimer said it will "take the over."

Chipotle recently traded at $682.65, up 0.7 percent on the day.