Jefferies Maintains an 'Underperform' on Chipotle Mexican Grill (CMG); Same Store Sales Have Peaked, Margins Up Next

Jefferies maintains an 'Underperform' on Chipotle Mexican Grill (NYSE: CMG) price target of $305.00 (from $362.00).

Analyst, Andy Barish, said, "EPS $2.56 beat our $2.25/cons $2.30. Margins impressive but stock weak on sales miss. SSS down to single digits ahead of expected 2H decel (8% vs our 11%/consensus 10%, on +4.6% price). July traffic trending in line w/ 2Q; we est. 3Q SSS of 4.5% vs. 2H guide for low-MSD. We still see downside risk on possible commodity inflaton & labor pressure. Our ’12/13 EPS to $8.61/$10.16 (from $8.55/10.34)."

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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