In the latest close session, Chipotle Mexican Grill (CMG) was up +1.62% at $54.65. The stock's change was more than the S&P 500's daily gain of 1.11%. Meanwhile, the Dow experienced a rise of 1.19%, and the technology-dominated Nasdaq saw an increase of 1.43%.
Coming into today, shares of the Mexican food chain had gained 6.22% in the past month. In that same time, the Retail-Wholesale sector gained 0.9%, while the S&P 500 gained 3.92%.
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 July 23, 2025. On that day, Chipotle Mexican Grill is projected to report earnings of $0.32 per share, which would represent a year-over-year decline of 5.88%. Alongside, our most recent consensus estimate is anticipating revenue of $3.1 billion, indicating a 4.39% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.21 per share and revenue of $12.23 billion, indicating changes of +8.04% and +8.1%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Chipotle Mexican Grill. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Chipotle Mexican Grill presently features a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Chipotle Mexican Grill has a Forward P/E ratio of 44.59 right now. This expresses a premium compared to the average Forward P/E of 22.53 of its industry.
Investors should also note that CMG has a PEG ratio of 2.67 right now. 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. CMG's industry had an average PEG ratio of 2.6 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 150, finds itself in the bottom 40% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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