GS notoriously wrong on its picks, recommends. Picks usually do a 180 the other way after GS chimes in:
Chipotle's (CMG) ShopHouse Asian Concept Will Be Huge Hit, Target Raised - Goldman
10:05 am ET 09/21/2011- Street Insider
Goldman Sachs reiterated their Buy rating and lifted their price target on Chipotle Mexican Grill (NYSE: CMG) from $365 to $380 after visiting the company's first ShopHouse Asian concept restaurant in DC.
The firm said Chipotle's fundamentals are robust and "we have become incrementally more optimistic regarding ShopHouse as a potentially meaningful upside option not currently priced in the stock."
Goldman said ShopHouse is entering a "sweet spot" in the restaurant sector.
They note the fast casual segment is compounding at 12% per year, but still represents only 3% of restaurant industry sales. Being the #1 player in fast casual, Chipotle lends credibility and expertise.
The firm sees Chipotle funding 1,200 ShopHouse locations entirely with cash generated between now and 2014 year end.
Commenting on the initial demand at the first store in Washington DC, the analyst noted: "The line was 30 people deep during the peak lunch hour despite littlemarketing other than word of mouth. Consumers rated the food highly and saw good price value." Peak lunch hour time saw 50-200 people/hour, roughly inline with Chipotle's current standard. Average service time was 8-10 minutes despite the line.
For more ratings news on Chipotle Mexican Grill click here and for the rating history of Chipotle Mexican Grill click here.
Shares of Chipotle Mexican Grill closed at $333.19 yesterday, with a 52 week range of $164.19-$346.78.
>Goldman Sachs reiterated their Buy rating and lifted their price target on Chipotle Mexican Grill (NYSE: CMG) from $365 to $380
2nd upgrade to 380 this week... and now we have a boatload of new retail shorts trapped with Cramer
can you believe they state that "Chipotle funding 1,200 ShopHouse locations entirely with cash generated between now and 2014 year end"
Although Chipotle Management has Said they have NO plans to build more than just this ONE!
If Chipostal has the cash flow to expand at hyped 20% clip, I would love to see it. Be honest, they don't have it. That's why they issue shares into the market to compensate their management because not enough cash flow for operations. They need to keep legal team in place cuz I see class action suits coming soon the the Slophouse. Hopefully the case is heard here in Denver, I want to get a glimpse at the Ponzi leaders.
Chop a huge failure been there it's pathetic. Horrible food my three year old could do better. Pathetic and desperate attempt and a true failure for CMG. Was a trend for a while but people sick of the overpriced menu and pathetic customer service as the company seeks to cut as margin depression continues. Pathetic run right now, let the price fall big and go private best option for this failing company.