S&P Capital IQ Reiterates its HOLD Rating on Chipotle Mexican Grill, Target Price Raised

October 24 00:00 2011

New York, October 24 (RainbowNewsLine.com) – Analyst Jim Yin of S&P Capital IQ reiterates his HOLD rating on the shares of Chipotle Mexican Grill (NYSE: CMG), while raising his estimates for the company. The 12-month target price has been raised from $330 to $345.

Analyst Jim Yin, in a research report published on October 22, mentions that the company reported its Q3 results ahead of the estimates, as the revenues grew 24% and a 11% growth in same store sales. Although the company raised its menu prices, the traffic and average ticket prices were not affected, the analyst says. Analyst believes that the company has significant growth opportunities due to high sales during off peak hours and new store openings. The analyst expects the company’s operating margins to expand going forward, as food inflation will reduce. The EPS estimates for 2011 and 2012 have been raised from $6.30 to $6.75 and from $7.49 to $8.22, respectively.