Piper Jaffray Raises PT On CMG To $310

Piper Jaffray has raised its price target on Chipotle Mexican Grill (NYSE: CMG) from $265 to $310 and is maintaining its Overweight rating on the stock, based upon softer-than-expected 1Q11.

According to Piper Jaffray, “Chipotle's 1Q11 SSS were stronger-than-expected at +12.4%, and even more impressive given the increase was largely traffic driven. Store-level margins decreased 90 bps to 25.2%, and operating margins decreased 30 bps to 14.7%. While food costs are likely a headwind over the next couple of quarters we are encouraged by the continued domestic growth, ongoing focus around store-level throughput, and ongoing labor efficiency.”

CMG closed yesterday at $288.10.