Bernstein Reiterates ‘Outperform’ Rating on Chipotle Mexican Grill (CMG), Reduces PT from $50 to $40

Core Viewpoint - Chipotle Mexican Grill, Inc. (NYSE:CMG) is considered one of the best restaurant stocks to buy currently, despite a cautious outlook on U.S. restaurant traffic and a reduction in price targets by analysts [1][2]. Analyst Ratings - Bernstein has reiterated an "Outperform" rating on Chipotle, lowering its price target from $50 to $40, reflecting a cautious near-term view on consumer demand recovery [2]. - Mizuho raised its price target from $34 to $36 while maintaining a "Neutral" rating, indicating that Chipotle is effectively using pricing and promotions to drive transaction growth, although this may pressure restaurant-level margins [3]. Market Conditions - The firm anticipates a gradual recovery in consumer demand following multiple confidence shocks in 2025, including macroeconomic uncertainties and significant policy changes [2]. - Potential catalysts for growth in spring 2026 include the passage of a new Tax Bill and increased demand due to the upcoming Soccer World Cup in the U.S., which is expected to enhance traffic and sales momentum [2]. Company Overview - Chipotle operates a fast-casual restaurant platform specializing in burritos, burrito bowls, quesadillas, tacos, and salads, indicating a focused menu strategy [4].