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Fly News Breaks for November 18, 2019
CMG
Nov 18, 2019 | 09:09 EDT
William Blair analyst Sharon Zackfia says that based on her weekly analysis, Chipotle Mexican Grill raised prices in six of the 10 markets she tracked this week, with the most pronounced increases on guacamole, sides, and beverages. The current price increase is rolling out a bit earlier than last year's early-December price increase, which conversely focused more on entrees, Zackfia tells investors in a research note. She believes the current round of price increases is already likely contemplated in consensus estimates. However, Zackfia increased her Q4 and Q1 estimates given the extension of carne asada through at least the first quarter as she believes carne asada was a material contributor to Chipotle's comp acceleration in late September that continued into October. Nonetheless, she keeps a Market Perform rating on the shares, seeing "already-elevated consensus expectations."