02:58 PM EDT, 10/14/2024 (MT Newswires) -- Chipotle Mexican Grill ( CMG ) will likely see continued strong sales and earnings growth driven by traffic growth and margin improvements in 2024 and 2025, despite a challenging macroeconomic environment, UBS Securities said in a note on Monday.

The firm said it expects Q3 comparable store sales growth to be around 6%, in line with the consensus of 6.1%, and estimates a Q4 comparable store sales growth that is aligned with a consensus of 5.5%.

UBS also estimates Q3 restaurant margin of more than 25%, indicating seasonally lower sales, labor inflation, and slightly higher food inflation, UBS added.

Chipotle is well-positioned with various strategic initiatives, including automation technology, international expansion and potentially expanding to new dayparts like breakfast and late night, UBS said.

UBS has a buy rating and a $70 price target on the company's stock.

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