Piper Sandler Upgrades Chipotle (CMG) to Overweight, Cites Q2 2025 Earnings Report

Chipotle Mexican Grill Inc. (NYSE:CMG) is one of the best upside stocks to invest in now. On August 12, Piper Sandler upgraded Chipotle to Overweight from Neutral with a price target of $50, down from $53. This decision followed the company’s Q2 2025 earnings report.

Chipotle Mexican Grill reported a total revenue of $3.1 billion in Q2, which was a 3% year-over-year increase driven by new restaurant openings. However, comparable sales declined by 4%, primarily due to a 4.9% decrease in transactions, which was partially offset by a 0.9% increase in the average check.

Piper Sandler Upgrades Chipotle (CMG) to Overweight, Cites Q2 2025 Earnings Report

A chef plating up a wide variety of dishes for a restaurant chain.

In Q2, the company opened 61 new restaurants, of which 47 included a Chipotlane, which brought the total number of locations to 3,839. Digital sales remain a strong point, accounting for 35.5% of total sales. The company maintains a strong balance sheet with $2.1 billion in cash and investments and no outstanding debt.

Chipotle Mexican Grill Inc. (NYSE:CMG) owns and operates Chipotle Mexican Grill restaurants. The company also provides delivery and related services through its app and website.

While we acknowledge the potential of CMG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CMG and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.