Market Overview

SunTrust Still Expecting A Strong Comps Recovery At Chipotle

SunTrust Still Expecting A Strong Comps Recovery At Chipotle

Chipotle Mexican Grill, Inc. (NYSE: CMG) shares have underperformed their restaurant peers over the past month, declining 12.9 percent.

Jake Bartlett of SunTrust Robinson Humphrey maintains a Buy rating on the company, with a price target of $550.

SSS Recovery Likely

Bartlett expressed a continued bullish stance on Chipotle, with expectations of robust same-store sales recovery going forward.

“The trajectory of NT SSS is disappointing, but we see multiple NT and LT drivers to a SSS recovery,” the analyst mentioned.

Related Link: 4 Takeaways Related To Chipotle's Food Safety Practices Probe

The 2Q same-store sales estimate has been lowered from a decline of 18 percent to a decline of 20 percent.

However, the analyst also pointed out that the near-term and medium-term drivers included loyalty, chorizo, digital ordering, delivery and catering, while favorable real estate and price-value propositions could be long-term drivers of same-store sales recovery.

The EPS estimates for 2016 and 2017 have been lowered.

Latest Ratings for CMG

Oct 2019MaintainsSell
Oct 2019MaintainsOutperform
Oct 2019MaintainsNeutral

View More Analyst Ratings for CMG
View the Latest Analyst Ratings

Posted-In: Jake BartlettAnalyst Color Long Ideas Reiteration Restaurants Analyst Ratings Trading Ideas General Best of Benzinga


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