Piper Jaffray Trims Numbers on Chipotle Mexican Grill (CMG) Post Q3
Piper Jaffray analyst Nicole Miller Regan reiterated an Overweight rating and lowered her price target on Chipotle Mexican Grill (NYSE: CMG) to $737.00 (from $764.00) following solid third quarter results.
Regan commented, "Chipotle reported 3Q15 results including same-store sales of +2.6% (vs. consensus expectations of +2.5% and on top of 3Q14's record +19.8% same-store sales result) and EPS of $4.59 (vs. expectations of $4.62). Same-store sales were driven largely by traffic and included 0.7% price as the company took targeted menu price increases to offset beef inflation. To date in 4Q, we understand sales and traffic trends to be running more or less in the same range as 3Q's +2.5% result. Our updated estimates are slightly lower vs. prior estimates but are now in-line with the company's just-provided FY16 guidance. Our EBITDA-based price target also ticks down on this adjustment although we reiterate our OW rating and positive view on CMG shares. Our $737 PT is based on 20x FY16E EV/EBITDA (vs. $764 prior based on 20x FY16E EV/EBITDA)."
The firm moved FY 2015 EPS from $17.42 ato $17.32 and FY 2016 EPS from %19.70 to $19.36.
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Shares of Chipotle Mexican Grill closed at $705.63 yesterday.