Chipotle (CMG) Stock Forecast & Price Target

Chipotle Mexican Grill is experiencing strong financial growth, underscored by $11.3 billion in sales from its extensive network of 3,644 company-operated U.S. locations, complemented by international locations and licensed stores. The company anticipates significant margin expansion driven by the rollout of its Chipotlane format and a positive consumer environment that may lead to increased comparable sales. Improved cost efficiencies in food, beverage, and packaging, alongside strategic menu innovations and enhanced digital engagement, position Chipotle for sustained sales momentum and operational improvements in the coming years.

Chipotle Mexican Grill has reported a decline in its restaurant-level operating margin, which dropped to 23.4% in the fourth quarter of 2025, down 140 basis points year-over-year, primarily due to modest pricing and commodity inflation. Furthermore, same-store sales growth is projected to remain flat for 2026, with minimal menu price increases expected, leading to significant margin contraction in a year characterized by 3-4% commodity inflation pressures. The company has also revised its fiscal year 2026 earnings per share estimate downward from $1.20 to $1.15, indicating a cautious outlook amidst these challenging financial conditions.