BTIG Downgrades Chipotle Mexican Grill (CMG) to Neutral
BTIG downgraded Chipotle Mexican Grill (NYSE: CMG) from Buy to Neutral and removed its price target. The change follows the release of Q1 results. Analyst Peter Saleh noted a slower recovery in sales and a shift in promotional strategy.
"We are downgrading shares of Chipotle to Neutral from Buy given the slower pace of sales recovery and lack of details surrounding new sales driving initiatives such as chorizo and loyalty. While we continue to believe that Chipotle will fully recover its lost sales, we are increasingly uncertain about the timing of the recovery, the promotional effort that may be required to achieve it and the resulting margin implications. We had anticipated stronger sales trends in April following the significant promotions in February and March and the lack of a more discernible improvement leaves too much uncertainty to maintain our Buy rating," said Saleh.
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Shares of Chipotle Mexican Grill closed at $445.92 yesterday.