Chipotle Mexican Grill (CMG) Upgraded To Buy, Shares Up Nearly 4%
February 12, 2010 5:47 PM
Stifel Nicolaus analysts Steve West and Matthew Van Vliet upgraded their rating of restaurant operator Chipotle Mexican Grill, Inc. (NYSE: CMG) to Buy and increased their target price for the company from $97 to $112 based on a strong 4th quarter.
Chipotle Mexican Grill's 4th quarter 2009 earnings per share of 99 cents beat consensus estimates by 18 cents.
The Stifel Nicolaus analysts cited a restaurant level margin improvement of 340 bps for the strong 4th quarter growth, as gross margin, labor costs and other expenses all improved.
The main risks for the company were unpredictable consumer tastes, trendy diets, volatile food and labor costs and high unemployment.
Stifel Nicolaus also raised its estimates of for 2010 earnings per share from $4.20 to $4.60.
The stock's 52 week range is $47.89 to $105.13 and it closed on Friday at $104.87, up nearly 4% for the day.
