Deutsche Bank analyst Karen Short says a turnaround for Chipotle Mexican Grill (CMG) is still “down the road” after the company released an intra-quarter same-store-sales update. Although March started to gain some momentum following Chipotle’s promotional blitz, another food scare within the Boston marketplace weighed on results once again as the most recent week’s same-store-sales declined 27.3%.
Short tells investors in a research note. Last night’s report indicates it will take longer than expected for a sales recovery, additional food safety issues will be met negatively and there is still “significant risk” to profitability, the analyst contends. She believes the shares deserve to trade closer to her $400 price target. The analyst keeps a Sell rating on Chipotle. The stock is trading down pre-market around 5.5% to $475.
