Barclays Maintains an 'Equalweight' on Chipotle Mexican Grill (CMG); 3Q11 Uneventful...But Caution Into 2012

Barclays maintains an 'Equalweight' on Chipotle Mexican Grill (NYSE: CMG) price target raised $10 to $275.00.

Barclays analyst says, "Relative to historical outsized volatility in results, 3Q11 was uneventful. Top and bottom line trends were 'relatively' in-line with expectations, with significant food inflation limiting upside. And near term, both extreme comp and cost trends are likely to persist, with double-digit comps battling 10%+ food inflation. Looking to '12, expectations may need to be tempered, even after respectfully noting that low-single-digit comp guidance is very conservative. We're lowering '12 estimates to reflect sustained inflation, only partially offset by modest pricing. Importantly, such concerns are shorter-term in nature, and we expect longer-term investors will be buyers on any pullback in future quarters, as the structural growth story is intact, and we continue to believe Chipotle is the best growth story in restaurants (and perhaps retail), with comp and unit growth still industry leading. On valuation, currently ~40x forward versus the 16-43x 3-year range and 29x average." (Barclays lowers FY11 EPS estimate from $6.95 to $6.85 and FY12 $8.75 to $8.50)

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 $307.91 yesterday.

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