11:10 AM EDT, 08/14/2024 (MT Newswires) -- Chipotle Mexican Grill ( CMG ) is expected to maintain its market share gains despite a tougher environment for restaurants, Wedbush said in a note Wednesday.

Wedbush said a post-Q2 reset of H2 same-store sales growth and margin expectations increases the probability of upside.

Chipotle remains in "very good hands" following leadership changes, with Chairman and Chief Executive Brian Niccol leaving to join Starbucks (SBUX), according to the note. Chief Operating Officer Scott Boatwright has been appointed interim CEO while Jack Hartung, who recently declared his retirement as chief financial officer, has agreed to remain with the company indefinitely and will take on the position of president of strategy, finance, and supply chain.

Wedbush maintained its Q3 same-store sales growth estimate of 6% compared with consensus of 6.1%, while Q3 food costs are projected "just below" 31%, margin estimates are adjusted to 25.3%, and increased share repurchases are likely with $151.4 million repurchased in Q2 and $647.7 million remaining on the current authorization, Wedbush said.

Wedbush upgraded Chipotle Mexican Grill ( CMG ) to outperform from neutral and raised its price target to $58 from $54.

Price: 51.75, Change: +0.07, Percent Change: +0.13