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Chipotle Issues 2017 Guidance, Some See Price Increases Ahead

Chipotle Issues 2017 Guidance, Some See Price Increases Ahead

Chipotle Mexican Grill, Inc. (NYSE: CMG) shares fell over 5 percent after the restaurant chain released updated guidance reported on BenzingaPro.

Notable Takeaways

  • Food costs are expected to be about 34.2 percent of sales.
  • Marketing/promotional costs are anticipated to rise about 20–30 basis points year over year.
  • Operating costs are expected to be higher than in the first quarter.

Sara Senatore, a senior research analyst for Sanford Bernstein, said, “We think the margin guidance suggests CMG is finding further cost saves - given avocado prices are somewhat higher than expected- and that revenues are likely in-line with internal expectations with perhaps more room for price ahead.”


In her view, “Higher food costs and in-line topline could presage broader price increases beyond the current 20 percent of stores.”

Chipotle was trading down 6.15 percent at $430.69 at the time of publication.

Related Links:

Piper Jaffray On Chipotle: Remain Patient In Owning Shares

Does Chipotle's Updated Guidance Change Anything?

Latest Ratings for CMG

Oct 2019MaintainsSell
Oct 2019MaintainsOutperform
Oct 2019MaintainsNeutral

View More Analyst Ratings for CMG
View the Latest Analyst Ratings

Posted-In: Sanford BernsteinAnalyst Color News Guidance Restaurants Analyst Ratings Movers General Best of Benzinga


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