UPDATE: Guggenheim Starts Chipotle Mexican Grill (CMG) at Neutral

July 26, 2021 4:15 PM EDT
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Price: $1,922.39 +0.24%

Rating Summary:
    29 Buy, 15 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 6 | Down: 13 | New: 24
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(Updated - July 26, 2021 4:30 PM EDT)

Guggenheim analyst Gregory Francfort initiates coverage on Chipotle Mexican Grill (NYSE: CMG) with a Neutral rating and a price target of $1,750.00.

The analyst comments "Chipotle is a best-in-class growth story in limited-service with high single digit unit growth coupled with mid to high single digit normalized same store sales driving, by our math over 2019-2023, 13-14% revenue growth and 25% EPS growth. The company has 2,800 units and roughly $7.5bn in annual revenue, below McDonald’s at $40bn, Chick-Fil-A at $14bn and many limited-service peers in the $9-10bn range, suggesting that the company should continue to run outsize unit growth vs. peers. Before an E.coli outbreak in late 2015, Chipotle had nearly $2.6mn AUVs with 27-28% restaurant level margins. Following the food safety incident, AUVs fell to $1.8mn with 13% margins in 2016 before a multi-year expansion brought AUVs back to roughly $2.2mn pre-Covid with 20-21% restaurant margins. This breakdown pre-Covid was $0.4mn for digital sales (including delivery) with $1.8mn for non-digital with recent $2.6mn AUVs comprised of $1.3mn for each of the digital and non-digital business."

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 $1830.92 yesterday.


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