Chipotle price target lowered to $66 from $68 at KeyBanc

KeyBanc analyst Eric Gonzalez lowered the firm’s price target on Chipotle to $66 from $68 and keeps an Overweight rating on the shares. The firm notes Chipotle’s Q2 results included EPS, same-store sales growth, and store-level margins that exceeded expectations, driven by industry-leading traffic growth. However, same-store sales growth normalized to around 6% in June and July, and the company sees some near-term margin pressure from dairy/avocados, a mix shift from promotional items this fall, and investments to ensure portion sizes remain generous/uniform across the system.