Here's Why Chipotle Looks Poised To Beat Expectations

William Blair issued a report on Chipotle Mexican Grill, Inc. (NYSE: CMG) ahead of Chipotle’s earnings announcement on April 21. William Blair rates Chipotle as Outperform, while a price target is unavailable.

Analysts Sharon Zackifia and Tania Anderson wrote, “We expect Chipotle’s first quarter EPS will meet our estimate of $3.75, up 42 percent and above the consensus of 3.63….Chipotle has emerged as a leader in the fast-casual Mexican restaurant space, as the concept’s freshly prepared food, streamlined operations, and industrial chic ambience have generated strong consumer appeal. As a result, Chipotle generates enviable sales productivity in addition to best in class restaurant level margins.”

William Blair offered several key points for investors:

• Anticipates a 12 to 14 percent increase in same-store sales growth.
• Projects the third consecutive quarter of of year-over-year restaurant level margin expansion.
• Sales leverage will drive G&A costs lower to 5.8 percent.
• Expects management to reiterate plans for 190 to 205 new locations, representing growth of 11 to 12 percent.

Shares of Chipotle recently traded at $678.64, down 0.43 percent.