BMO Upgrades Chipotle (CMG) to Outperform

by MarketNewsData

BMO Capital Markets raised its rating on Chipotle from Market Perform to Outperform, citing strong fundamentals and room for upside.

  • Reason for Upgrade:
    BMO sees continued momentum in same-store sales, strong pricing power, and early success in international expansion. The firm expects operating margins to improve further, supported by digital ordering efficiencies and cost control.
  • Stock Reaction:
    CMG traded higher on the upgrade, hovering near all-time highs above $3,200.
  • Analyst View:
    BMO called Chipotle “best-in-class” among fast-casual peers, praising its execution on store growth and loyalty program adoption.
  • What’s Driving the Bullish Call:
    • Strong U.S. sales comps
    • Digital order growth
    • International market entry gaining traction
    • Improving margins as food cost inflation eases

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