In the latest close session, Chipotle Mexican Grill (CMG) was up +2% at $56.15. The stock exceeded the S&P 500, which registered a gain of 0.52% for the day. Meanwhile, the Dow experienced a rise of 0.63%, and the technology-dominated Nasdaq saw an increase of 0.48%.
Shares of the Mexican food chain have appreciated by 9.92% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 2.65%, and the S&P 500's gain of 4.27%.
The upcoming earnings release of Chipotle Mexican Grill will be of great interest to investors. The company's earnings report is expected 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.1 billion, up 4.39% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.21 per share and revenue of $12.23 billion. These totals would mark changes of +8.04% and +8.1%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Chipotle Mexican Grill. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
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 past month, the Zacks Consensus EPS estimate remained stagnant. At present, Chipotle Mexican Grill boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Chipotle Mexican Grill is presently trading at a Forward P/E ratio of 45.64. This signifies a premium in comparison to the average Forward P/E of 22.21 for its industry.
It's also important to note that CMG currently trades at a PEG ratio of 2.73. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 2.54.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 142, this industry ranks in the bottom 43% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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