Chipotle Mexican Grill Inc. (NYSE:CMG) shares are trading higher on Thursday after Goldman Sachs initiated coverage on the stock with a Buy rating and a price target of $3,730.
What's Going On: Analyst Christine Cho highlighted operational improvements, such as reducing wait times and serving fresher food, both of which are increasingly valued by customers, as key factors that could drive momentum. The analyst believes throughput and consistent execution on products could drive restaurant margins near 28-29% by 2026.
Additionally, Cho noted the achievable growth of store locations in North America to 7,000 and expansion efforts in Canada as significant growth drivers.
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The analyst also highlighted Chipotle's product execution and menu innovation, saying the chain represents one of the best quality-to-value options for consumers.
CMG Price Action: Chipotle Mexican Grill shares were up by 2.58% at $3,252.63 at the time of writing, according to Benzinga Pro.
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