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Chipotle Mexican Grill (CMG) Estimates, PT Lowered at UBS

April 27, 2016 7:59 AM EDT
Get Alerts CMG Hot Sheet
Price: $2,903.61 -0.68%

Rating Summary:
    32 Buy, 14 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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UBS analyst Keith Siegner lowered his price target on Chipotle Mexican Grill (NYSE: CMG) to $450.00 (from $460.00) following Q1 results while maintaining a Neutral rating saying the sales recovery remains challenging and consensus likely coming down again.

Siegner commented, "With 1Q EPS basically preannounced and much of 1Q's sss largely known, the primary focus was April sss and sequential improvement. Disappointingly, April sss of -22% (incl. +400 bps Easter benefit) were not much better than March (-26.4% incl. -2.5% Easter impact). Despite improving customer perception scores, the sales recovery remains elusive given headwinds that we've previously highlighted. Particular weakness on the West Coast and Northeast remains concerning, as does softness from loyal and lapsed customers. While CMG didn't provide 2Q EPS guidance, it doesn't expect a loss for the quarter given fewer one-time items, recovery progress and a seasonally better quarter. But against our lowered sss and incremental margin deleverage pressure, we're again reducing estimates - our 2Q EPS to $1.05 and FY16 to $4.91, w/ FY17 modestly reduced. We continue to struggle w/ limited visibility into the timing and magnitude of a sales rebound and remain skeptical LT margin trends will recover as some still expect."

For an analyst ratings summary and ratings history on Chipotle Mexican Grill click here. For more ratings news on Chipotle Mexican Grill click here.

Shares of Chipotle Mexican Grill closed at $445.92 yesterday.



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