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Chipotle Mexican Grill (CMG) ended the recent trading session at $53.60, demonstrating a +0.81% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 1.12% for the day. Elsewhere, the Dow saw an upswing of 1.14%, while the tech-heavy Nasdaq appreciated by 1.46%.
The Mexican food chain's stock has dropped by 9.91% in the past month, falling short of the Retail-Wholesale sector's loss of 6.55% and the S&P 500's loss of 4.13%.
Market participants will be closely following the financial results of Chipotle Mexican Grill in its upcoming release. In that report, analysts expect Chipotle Mexican Grill to post earnings of $0.29 per share. This would mark year-over-year growth of 7.41%. In the meantime, our current consensus estimate forecasts the revenue to be $2.97 billion, indicating a 9.91% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.29 per share and revenue of $12.62 billion, indicating changes of +15.18% and +11.52%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Chipotle Mexican Grill. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.09% decrease. Chipotle Mexican Grill is currently a Zacks Rank #3 (Hold).
In terms of valuation, Chipotle Mexican Grill is currently trading at a Forward P/E ratio of 41.33. This represents a premium compared to its industry's average Forward P/E of 23.58.
One should further note that CMG currently holds a PEG ratio of 2.05. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 2.4.