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Chipotle Mexican Grill (CMG) closed at $57.83 in the latest trading session, marking a -0.81% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.92% for the day. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 2.03%.
Shares of the Mexican food chain witnessed a loss of 2.98% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 4.85% and the S&P 500's gain of 0.81%.
Market participants will be closely following the financial results of Chipotle Mexican Grill in its upcoming release. The company plans to announce its earnings on February 4, 2025. On that day, Chipotle Mexican Grill is projected to report earnings of $0.24 per share, which would represent year-over-year growth of 14.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.85 billion, up 13.35% from the year-ago period.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Chipotle Mexican Grill. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.93% higher. Chipotle Mexican Grill is holding a Zacks Rank of #2 (Buy) right now.
From a valuation perspective, Chipotle Mexican Grill is currently exchanging hands at a Forward P/E ratio of 44.16. This represents a premium compared to its industry's average Forward P/E of 24.11.
Investors should also note that CMG has a PEG ratio of 1.96 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Restaurants industry had an average PEG ratio of 2.11 as trading concluded yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 50, positioning it in the top 20% of all 250+ industries.