Key facts
- JPMorgan upgraded Chipotle (CMG) to Overweight from Neutral.
- JPMorgan set a new price target of $35 for CMG, with a December 2026 timeframe.
- Chipotle management acknowledged strategic mistakes made in 2025.
- The company plans international expansion into Mexico, South Korea, Singapore, UK, France, Germany, and the Middle East.
- Chipotle expects sustainable restaurant margins below 25%.
JPMorgan has upgraded Chipotle Mexican Grill (CMG) to Overweight from Neutral, identifying a buying opportunity following a significant decline in the stock price. The firm set a new December 2026 price target of $35, suggesting approximately 24% upside from its closing price of $28.18 on June 4. This upgrade follows meetings between JPMorgan analysts and Chipotle's CEO Scott Boatwright and CFO Adam Rymer. Management acknowledged strategic missteps from 2025 and outlined plans to revitalize growth through enhanced marketing, improved operations, and international expansion. JPMorgan anticipates Chipotle transitioning from a hyper-growth phase to a more mature business, with annual revenue growth projected between 8% and 9%. The company now expects sustainable restaurant margins to settle below 25%, shifting focus from margin expansion to driving foot traffic via investments in labor and marketing. Chipotle plans to expand its presence internationally through partnerships in markets including Mexico, South Korea, Singapore, the UK, France, Germany, and the Middle East. JPMorgan believes this international growth potential is not currently reflected in the stock price. Chipotle's year-to-date performance is -23.84%, with a market capitalization of approximately $36.87 billion.