Chipotle Mexican Grill (CMG) is positioned for a recovery in sales growth in 2027, supported by new menu items, a marketing refresh and a planned catering rollout, despite near-term sales pressures, UBS Securities said in a note.

The company is scheduled to report its Q3 results on Oct. 28.

The investment firm said it expects Q3 same-store sales growth of about 1.5%, versus the 1.3% analyst consensus and company guidance of about 1%.

UBS models same-store sales growth of 1.4% for 2026 and 2.6% for 2027, citing growth from menu innovation, marketing led by new chief marketing officer Fernando Machado, a revamped rewards program and the national launch of catering.

The investment firm warned that sales trends could remain weak in the fourth quarter, potentially putting pressure on restaurant-level margins. It forecasts fourth-quarter restaurant-level margins of 22.8%, below the 23.4% consensus estimate, before some improvement in 2027.

Chipotle should also keep opening stores at a high-single-digit rate, with its 2027 pipeline already fully built out, according to the note.

UBS has a buy rating on Chipotle and a $45 price target.

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