Chipotle Mexican (CMG) Numbers Boosted at Jefferies, Still Cautious on Margin Gains
Jefferies boosted estimates and its price target on Chipotle Mexican Grill (NYSE: CMG) from $265 to $306 following Q2 results but maintained an Underperform rating.
While marketing efforts drove SSS beat, margin gains were elusive, analyst Andy Barish said.
"SSS of 5.5% beat Consensus of 3.7% as extra day adds 1% & increased marketing pays off, but $2.82 EPS only in line as margins eroded by food costs. 2Q traffic of 4.5% continuing into 3Q. Street likely disappointed by delayed price plans for 2H13 & continued margin pressures, but CMG could take pricing action in early ’14 with GMO-free foods."
The firm raised Q3 EPS from $2.56 to $2.59, maintained FY 2013 at $10.18 and raised FY 2014 from $11.97 to $12.24.
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 $376.75 yesterday, with a 52 week range of $233.82-$404.59.
While marketing efforts drove SSS beat, margin gains were elusive, analyst Andy Barish said.
"SSS of 5.5% beat Consensus of 3.7% as extra day adds 1% & increased marketing pays off, but $2.82 EPS only in line as margins eroded by food costs. 2Q traffic of 4.5% continuing into 3Q. Street likely disappointed by delayed price plans for 2H13 & continued margin pressures, but CMG could take pricing action in early ’14 with GMO-free foods."
The firm raised Q3 EPS from $2.56 to $2.59, maintained FY 2013 at $10.18 and raised FY 2014 from $11.97 to $12.24.
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 $376.75 yesterday, with a 52 week range of $233.82-$404.59.