Chipotle gains as sales forecast raise overshadows cyclosporiasis outbreak concerns

Shares of burrito chain Chipotle Mexican Grill rose 4.64% to $35.83 in premarket trading after the company raised its annual sales forecast on Wednesday, even as it said the third quarter could be its toughest after a late-July cyclosporiasis outbreak hurt consumer confidence.

The company expects fiscal 2026 comparable restaurant sales growth in the low-single digits percentage, up from its previous forecast of roughly flat growth. Chipotle also posted an adjusted profit of 33 cents per share, ahead of analysts' estimate of 32 cents.

Jefferies said trends improved through the quarter before easing recently on Cyclospora concerns, but Chipotle remains on track to achieve its raised low single-digit same-store sales growth target.

According to LSEG-compiled data, 27 of 37 brokerages rate the stock "buy" or higher and 10 rate it "hold". Their median price target is $44. Up to the previous day's close, the stock was down about 7.5% year to date.