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Chipotle Mexican Grill (CMG) closed at $49.98 in the latest trading session, marking a +0.3% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.76% for the day. Elsewhere, the Dow saw a downswing of 1.14%, while the tech-heavy Nasdaq depreciated by 0.18%.
The Mexican food chain's shares have seen a decrease of 13.79% over the last month, not keeping up with the Retail-Wholesale sector's loss of 10.64% and the S&P 500's loss of 7.29%.
The upcoming earnings release of Chipotle Mexican Grill will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.29, reflecting a 7.41% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.97 billion, up 9.89% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.29 per share and a revenue of $12.62 billion, demonstrating changes of +15.18% and +11.52%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Chipotle Mexican Grill. These revisions help to show the ever-changing nature 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% lower. Chipotle Mexican Grill is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Chipotle Mexican Grill's current valuation metrics, including its Forward P/E ratio of 38.78. This indicates a premium in contrast to its industry's Forward P/E of 24.25.
Meanwhile, CMG's PEG ratio is currently 1.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.26 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% of all 250+ industries.