Chipotle Mexican Grill (CMG) – Setting Up for a Strong 2H Rebound
Chipotle stock may have had a sluggish start to 2025, but there are several reasons to believe it could be setting up for a much stronger finish to the year.
Sales comps are already beginning to accelerate, which is one of the key trends we like to see in a name like this. Management continues to expand its U.S. footprint, with the potential to push store growth toward 10% annually over time—a figure that still leaves room for upside, especially given the company’s performance gap versus the rest of the industry.
Even if the economy slows, Chipotle appears well positioned. The brand’s value perception remains one of the strongest in its category, which could give it a relative advantage in terms of traffic if consumers start to pull back.
Margins are also expected to improve in the second half of 2025, which would put more fuel behind the stock’s next leg higher.
While BMO Capital upgraded CMG to Outperform and raised their price target from $56 to $65 (implying ~21% upside from recent levels), the broader setup suggests the stock may have more room to run beyond that if comps and margin expansion continue to strengthen.
