In the latest market close, Chipotle Mexican Grill (CMG – Free Report) reached $60.78, with a -1.12% movement compared to the previous day. This move lagged the S&P 500’s daily loss of 1.11%. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq lost 1.49%.
Prior to today’s trading, shares of the Mexican food chain had lost 0.93% over the past month. This has lagged the Retail-Wholesale sector’s gain of 1.42% and the S&P 500’s gain of 0.4% in that time.
The investment community will be paying close attention to the earnings performance of Chipotle Mexican Grill in its upcoming release. The company is slated to reveal its earnings on February 4, 2025. The company is forecasted to report an EPS of $0.24, showcasing a 14.29% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.85 billion, indicating a 13.15% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.11 per share and revenue of $11.32 billion, which would represent changes of +23.33% and +14.64%, respectively, from the prior year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Chipotle Mexican Grill. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.07% increase. As of now, Chipotle Mexican Grill holds a Zacks Rank of #3 (Hold).
In the context of valuation, Chipotle Mexican Grill is at present trading with a Forward P/E ratio of 55.4. This represents a premium compared to its industry’s average Forward P/E of 25.09.
It is also worth noting that CMG currently has a PEG ratio of 2.47. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The average PEG ratio for the Retail – Restaurants industry stood at 2.32 at the close of the market yesterday.
The Retail – Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 128, putting it in the top 50% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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