Chipotle Mexican Grill's (CMG) move towards more licensed growth is expected to result in gradually slowing revenue but a higher operating profit margin, BofA Securities said in a Tuesday note.

The company aims to open about 350 new company-operated stores in North America per year, and because it still targets a system-wide growth rate of 8% to 10%, or roughly 400 units per year, international markets will be needed to bridge the gap, the investment firm said.

Recently signed development agreements point to the number of new licensed units more than doubling in 2027 and continuing to rise moving forward.

Chipotle is expected to open 356 new company-operated restaurants in 2027 and an increasing number of licensed units until the company reaches a consistent system-wide gross opening rate of 400 per year in 2028, according to the note.

BofA reiterated its buy rating and raised its price target to $53 from $50.

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