SunTrust Sees Upside to Chipotle Mexican Grill (CMG) Check and SSS Estimates

SunTrust analyst Jake Bartlett reiterated a Buy rating and $900.00 price target on Chipotle Mexican Grill (NYSE: CMG) after a promo analysis revealed that Carne Asada sales appear to be higher as a % of sales than we expected following the 9/19 national launch. The analyst believes this could drive upside to check and SSS estimates.

The analyst stated "In 20 stores across the country, we found employees telling customers that Carne Asada was selling equal to or much more than Steak and, in some cases, almost as much as Chicken. While somewhat anecdotal and a small sample size, we believe that Carne Asada may be boosting check by more than our prior estimate of 150bps . Our revised scenario analysis (below) suggests a ~330bps boost to check, which would make our 3Q19 and 4Q19 SSS estimates of +9.5% and +7.0% conservative".

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 $825.00 yesterday.

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