William Blair Reiterates Outperform On Chipotle Mexican Grill Ahead Of 2Q14 Results


In a research report published yesterday, William Blair analyst Sharon Zackfia reiterated an Outperform rating on Chipotle Mexican Grill (CMG) amid expectations of CMG to meet or beat the current 2Q14 EPS estimates. No price target target was assigned.

The following bullets contain some highlights from the report:

  • We expect about 45 new locations in the quarter, representing year-over-year growth of 12% and leaving Chipotle on track to meet full-year expectations for 180 to 195 new locations. All told, we estimate an approximate 22% increase in second-quarter revenues to $999 million, above consensus of $986 million.
  • We expect management to adjust its full-year same-store sales guidance to account for the price increase that was fully implemented as of late June/early July. As a result, we expect full-year comp guidance to be raised to the low-double-digit range inclusive of the increase, versus prior guidance calling for a high-single-digit increase excluding the benefit of any price increase.
  • We continue to likeChipotle given its strong sales momentum and robust expansion opportunities, particularly as we expect EPS growth to accelerate in 2015 as restaurant-level margin likely improves to an all-time high on the benefit of the price increase.

According to TipRanks.com, which measures analysts and bloggers success rate based on how their calls perform, analyst Sharon Zackfia currently has a one-year average return of 22.9% and an 63% success rate. Zackfia is ranked #439 out of 3217 analysts.

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