Food safety concerns continue to affect Chipotle Mexican Grill, Inc. (NYSE: CMG), although sales initiatives could have an impact on value perceptions, Goldman Sachs’ Karen Holthouse said in a report. She maintained a Neutral rating on the company, with a price target of $490.

The food safety survey indicated “some improvement” in figures directly related to safety, suggesting that a higher number of consumers could return to or increase their frequency with proper incentives in place.

“That said, more than a quarter of respondents still say they are “much less likely” to eat there, suggesting a potentially long tail of consumers that have not seen the proper messaging around changes to procedures,” Holthouse wrote.

Related Link: Goldman Warns Of Downside Bias In Chipotle Heading Into Q2 Earnings

Survey Results

1. They would have no effect on me – Increased from 32 percent in March to 42 percent in June
2. They would make me slightly less likely to eat there – Declined from 36 percent in March to 32 percent in June
3. They would make me much less likely to - Declined from 32 percent in March to 26 percent in June

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