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Chipotle's upcoming report might show sales growth thanks to promotions, even with past food safety issues, says optimistic analyst.

OpinionRead the original at Benzinga
Good for CMG

The analyst raised Chipotle’s restaurant-sales estimate to 1% growth as promotions may draw visits despite food-safety trouble. The profit estimate stayed unchanged, but targeted offers had limited profit effects and higher food margins may ease chicken’s pressure.

CMG · Chipotle Mexican Grill Inc

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The AI's read

That suggests customers may keep visiting despite food-safety concerns. The offers focused on digital customers and events, and the analyst said their effect on profit was limited. They may also help Chipotle reach customers more precisely later. Food-safety trouble remains a drag, and chicken may shift sales toward items with different margins. The analyst expects higher food margins to make up for that pressure, but left the profit estimate unchanged. The expected traffic recovery carries more weight than those concerns.

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