Chipotle Mexican Grill (CMG) PT Raised to $2,750 at KeyBanc, 'Make Room for CMG in the Magnificent Seven'

KeyBanc analyst Eric Gonzalez raised the price target on Chipotle Mexican Grill (NYSE: CMG) to $2,750.00 (from $2,250.00) while maintaining a Overweight rating.

The analyst commented: "Chipotle’s 4Q23 results included EPS, SSS growth, and store-level margins that exceeded expectations driven by industry-leading transaction growth. And while SSS momentum softened in January due to abnormally cold temperatures, underlying trends reaccelerated as weather normalized. In addition, the Company continues to expect 285-315 new stores this year and ~10% by 2025. We reiterate our Overweight rating as we maintain that Chipotle’s digital capabilities, brand positioning, and marketing/innovation expertise provide for best-in-class unit returns and a unique level of resilience that is worth a premium relative to its peers. We raise our PT to $2,750 to reflect the brand’s strong momentum that is likely to continue to build over time, and we trim our 2024 EPS slightly to reflect higher G&A expenses. Our PT equates to 42.8x our 2025E EPS."

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