Wells Fargo Upgrades Chipotle Mexican Grill (CMG) to Market Perform; Increased Comfort Around Cost Pressures

Wells Fargo upgraded Chipotle Mexican Grill (NYSE: CMG) from Underperform to Market Perform. Valuation range to $304-330 from $219-245.

Wells analyst says, "Raising rating to reflect our increased comfort around some of the recent challenges to the business model including commodity inflation and labor pressures. Q2 EPS from continuing operations $0.04 ahead of our target but misses consensus by $0.04. Results benefited from strong top-line growth while margins were pressured by higher food and legal costs. Raising full year EPS estimates to $6.77 from $6.63 for 2011 and to $8.45 from $8.18 for 2012."

For more ratings news on Chipotle Mexican Grill click here and for the rating history of Chipotle Mexican Grill click here.

Shares of Chipotle Mexican Grill closed at $333.71 yesterday.

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