Chipotle Mexican Grill (CMG) ended the recent trading session at $48.53, demonstrating a -0.96% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.08%. On the other hand, the Dow registered a gain of 0.08%, and the technology-centric Nasdaq increased by 0.52%.
The Mexican food chain's shares have seen a decrease of 7.63% over the last month, surpassing the Retail-Wholesale sector's loss of 9.1% and falling behind the S&P 500's loss of 7.33%.
The investment community will be closely monitoring the performance of Chipotle Mexican Grill in its forthcoming earnings report. The company is scheduled to release its earnings on April 23, 2025. The company's earnings per share (EPS) are projected to be $0.28, reflecting a 3.7% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.96 billion, reflecting a 9.54% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.28 per share and revenue of $12.6 billion, indicating changes of +14.29% and +11.4%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Chipotle Mexican Grill. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.31% fall in the Zacks Consensus EPS estimate. As of now, Chipotle Mexican Grill holds a Zacks Rank of #3 (Hold).
Digging into valuation, Chipotle Mexican Grill currently has a Forward P/E ratio of 38.23. This valuation marks a premium compared to its industry's average Forward P/E of 23.19.
We can additionally observe that CMG currently boasts a PEG ratio of 1.89. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.12 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 140, positioning it in the bottom 45% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
