Chipotle price target raised to $803 from $796 at Wells Fargo
Wells Fargo analyst Jon Tower raised his price target for Chipotle to $803 from $796 as he believes the company currently appears to be hitting on all cylinders, with same-store sales, margins and EPS all coming in well-ahead of expectations for Q3 and with management suggesting that sales momentum has carried over into early Q4. While the unit growth was lower than he anticipated, the analyst notes that the growing mix of Chipotlane stores was the primary reason for the deviation. With these stores expected to generate higher returns than the current new store standard, he sees this as the proper move for the business over the long-term even if growth moderates from his prior expectations. Tower reiterates a Market Perform rating on the shares.