Goldman Sachs analysts initiated coverage on Chipotle Mexican Grill (NYSE:CMG) with a Buy rating and a price target of $3,730 on the stock, highlighting a strong growth story for Chipotle, driven by significant throughput opportunities.
The company has exceeded its $3 million average unit volume (AUV) target and is now aiming for $4 million in the medium term. This progression is expected to allow Chipotle to scale profitably while maintaining high standards in food quality and customer experience.
With ongoing improvements in throughput, the analysts forecast mid-single-digit same-store sales growth, an 8-10% compound annual growth rate (CAGR) in unit expansion, and industry-leading restaurant margins of 29% by 2026, which is 76 basis points above consensus estimates. These factors are anticipated to support best-in-class double-digit EPS growth for the company.