Wedbush Adjusts Numbers on Chipotle Mexican Grill (CMG); EPS Beat, Same-Store Sales Disappoint

July 20, 2012 1:58 PM EDT
Get Alerts CMG Hot Sheet
Price: $405.20 -0.9%

Rating Summary:
    15 Buy, 19 Hold, 8 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Wedbush maintains an 'Outperform' on Chipotle Mexican Grill (NYSE: CMG) price target of $420.00 (from $480.00).

Highlighted points from analyst, Nick Setyan: 1) 8% same-store sales growth disappoints - Revenue of $691 million was below our and consensus expectations of $707 million; 2) Record margins result in EPS beat, despite lower-than-expected revenue; 3) Believe marketing spend that’s set to more than double in Q3, after declining 50% in Q2 could help offset slower non-peak tx growth; and 4) Believe another price increase in 2H:12 possible should commodity inflation reaccelerate.

All in, Setyan, said, "We believe Chipotle remains among the best-positioned restaurants within our coverage universe to exceed EPS expectations in a challenging top-line environment." (FY12 EPS estimate from $8.99 to $9.19 and FY13 from $11.08 to $11.23)

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 $403.86 yesterday.

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