Chipotle assumed with an Outperform at RBC Capital

RBC Capital assumed coverage of Chipotle (CMG) with an Outperform rating and $70 price target Chipotle is a “top-tier operator in the fast-casual space with a long runway for unit growth and multiple potential upside catalysts which more than justify its premium valuation,” the analyst tells investors in a research note. The firm says the company’s throughput improvements should support sustained transaction growth, restaurant level margins should continue to expand with potential for upside versus consensus, and North America units should grow for the next several years.