Goldman analyst Michael Kelter says restaurant stocks will outperform in 2012, with quick-service restaurants (QSR) preferred over casual dining spots. He argues that lower food costs will likely lead to wider margins by the second half of the year. Kelter also argues that high-multiple growth stocks will outperform value stocks in the QSR group.
For that reason, Kelter added Chipotle Mexican Grill, a high flier with a forward price-to-earnings ratio of nearly 40, to Goldman's prestigious conviction buy list. Kelter says he expects earnings to grow by 35% to 40% this year, noting that his estimate for earnings of $9.39 a share is well ahead of the consensus estimate of $8.63 a share."We expect upside to both
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