Mizuho Upgrades Chipotle Mexican Grill (CMG) to Outperform

Mizuho analyst Nick Setyan upgraded Chipotle Mexican Grill (NYSE: CMG) from Neutral to Outperform with a price target of $40.00 (from $37.00).

The analyst comments: "We see a comp inflection near-term along with incremental margin visibility, with Q1 earnings/Q2-to-date commentary a potential positive catalyst. One, based on the strength of our checks, we increase our Q1 SSS growth estimate to 0.0% from (0.4)% vs. cons. of (1.1)%. Importantly, trends strengthened as the quarter progressed, pointing to Q2 traffic/comp upside as well (1.5% MSUSA; 0.7% cons.). Two, early success of ongoing comp initiatives (incremental value focus, upped marketing/promotional cadence, incremental menu innovation, etc.) points to further comp acceleration as 2026 progresses, particularly with easier YoY compares ahead. Three, CMG's year- long cycle of lower margin revisions is almost at an end. Lastly, valuation is an overly pessimistic reflection of CMG's mid-teens LT EBITDA growth algorithm. Therefore, we upgrade to OP from N and increase our PT to $40 from $37. We slightly increase our 2026 EPS estimate to $1.12 from $1.11 (Q1 to $0.24 from $0.23)."

For an analyst ratings summary and ratings history on Chipotle Mexican Grill click here. For more ratings news on Chipotle Mexican Grill click here.

Shares of Chipotle Mexican Grill closed at $32.94 yesterday.

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