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Raymond James Sees Menu Pricing Momentum Building at Chipotle (CMG)

Chipotle Mexican Grill, Inc. (NYSE:CMG) is included among the 13 Best Blue Chip Stocks to Buy Under $50.

Raymond James says its latest pricing checks show that Chipotle Mexican Grill, Inc. (NYSE:CMG) has quietly started raising menu prices in a few markets. This lines up with what management said on its Q3 call, explaining that it planned to use a “test-and-learn” and regional approach to pricing as it moves into 2026. So far, the firm has noticed two increases: roughly 2.5% in Denver and a little over 3% in Sacramento. It is still unclear when other markets might see similar changes, but Raymond James expects Chipotle to continue rolling out phased increases in the 2% to 3% range through 2026. That could translate into menu pricing growth of about 1% to 2% year over year. On December 5, the firm rates the stock Outperform.

On December 8, Chipotle Mexican Grill, Inc. (NYSE:CMG) disclosed in an SEC filing that its board approved another $1.8 billion for share buybacks. The board typically authorizes new repurchase pools every quarter, but starting with this latest move, it plans to approve larger amounts that can fund buybacks across several quarters at a time.

In other news, on December 12, Chipotle Mexican Grill, Inc. (NYSE:CMG) marked a major milestone by opening its 4,000th restaurant, located in Manhattan, Kansas, also known as the “Little Apple.” The company is now more than halfway toward its long-term goal of reaching 7,000 restaurants across the US and Canada. Since CEO Scott Boatwright took over in 2017, Chipotle has added about 1,700 new locations, growing its footprint by more than 70%. For 2025, Chipotle expects to open 315 to 345 new restaurants, with at least 80% featuring a Chipotlane. Looking ahead to 2026, management is planning 350 to 370 openings, including 10 to 15 run by international partners.

Chipotle Mexican Grill, Inc. (NYSE:CMG) is a fast-casual restaurant chain known for its customizable Mexican-inspired meals.

While we acknowledge the potential of CMG as an investment, 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 a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 15 Best Stocks to Buy for the Long Term and11 Best Low Priced Dividend Stocks to Buy According to Analysts.

Disclosure: None.

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