Telsey Advisory has initiated coverage of Chipotle Mexican Grill (CMG) with an Outperform rating, citing resilient same-store sales and expansion momentum. The firm highlights the company's sustained operational strength in a competitive fast-casual landscape.
- Telsey Advisory initiated coverage of Chipotle Mexican Grill (CMG) with an Outperform rating
- Q4 2025 same-store sales grew 7.2%, driven by digital channel performance
- 68 new locations opened in Q4 2025; total system-wide units exceed 3,300
- Projected 12.5% CAGR in adjusted EPS through 2028
- International markets showing double-digit comparable sales growth
- Market impact expected on institutional investor positioning in consumer discretionary sector
Telsey Advisory Group has launched coverage of Chipotle Mexican Grill (CMG) with an Outperform rating, marking a strategic endorsement of the restaurant chain’s long-term growth trajectory. The firm’s analysis underscores Chipotle’s ability to maintain consistent performance despite broader macroeconomic pressures affecting consumer spending. Key metrics point to underlying strength: CMG reported same-store sales growth of 7.2% in Q4 2025, exceeding industry averages and driven by increased digital ordering volume and menu innovation. The company also expanded its footprint with 68 new locations opened during the quarter, bringing total system-wide units to over 3,300 as of December 2025. These developments support Telsey’s view that Chipotle is well-positioned for continued market share gains. The firm projects CMG’s adjusted earnings per share to grow at a compound annual rate of 12.5% through 2028, supported by disciplined capital allocation, margin expansion initiatives, and ongoing international expansion, particularly in Canada and the U.K. where the brand has seen double-digit comparable sales growth in recent quarters. Investors are likely to respond positively to the upgrade, especially given the stock’s historical valuation premium within the restaurant sector. The Outperform designation may influence portfolio managers and institutional investors evaluating exposure to consumer discretionary equities ahead of the 2026 earnings cycle.