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Factors Setting the Tone for Chipotle's (CMG) Q2 Earnings
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Chipotle Mexican Grill, Inc. (CMG - Free Report) is scheduled to report second-quarter 2020 results on Jul 22, after market close. In the last reported quarter, the company delivered an earnings surprise of 23.2%. Further, the company has a trailing four-quarter earnings surprise of 13.8%, on average.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter earnings is pegged at 22 cents, indicating a decline of 94.5% from $3.99 reported in the year-ago quarter. For quarterly revenues, the consensus mark stands at $1,308 million, suggesting a decrease of 8.8% from the prior-year reported figure.
Factors to Note
Chipotle’s second-quarter results are likely to reflect impact of the coronavirus pandemic. The restaurant industry has been bearing the brunt of traffic weakness for a while now. The pandemic might have dented traffic and sales in the to-be-reported quarter. Moreover, comparable restaurant sales are also likely to be down in the second quarter owing to the pandemic.
However, the company has been shifting its strategy from giveaways, discounts and rewards to new menu items, operational excellence, enhancement of guest experience, technology-driven convenience and aggressive brand marketing. These sales-building efforts are likely to get reflected in the to-be-reported quarter’s results. The company has been increasing its focus on digital and delivery services owing to the shutting down of the dine-in facility in the wake of the virus outbreak.
Chipotle Mexican Grill, Inc. Price and EPS Surprise
Our proven model predicts an earnings beat for Chipotle this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other stocks from the Zacks Restaurant space that investors may consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
The Cheesecake Factory Incorporated (CAKE - Free Report) currently has a Zacks Rank #3 and an Earnings ESP of +50.50%.
Brinker International, Inc. (EAT - Free Report) has a Zacks Rank #3 and an Earnings ESP of +19.81%.
Starbucks Corporation (SBUX - Free Report) has a Zacks Rank #3 and an Earnings ESP of +3.04%.
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Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Factors Setting the Tone for Chipotle's (CMG) Q2 Earnings
Chipotle Mexican Grill, Inc. (CMG - Free Report) is scheduled to report second-quarter 2020 results on Jul 22, after market close. In the last reported quarter, the company delivered an earnings surprise of 23.2%. Further, the company has a trailing four-quarter earnings surprise of 13.8%, on average.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter earnings is pegged at 22 cents, indicating a decline of 94.5% from $3.99 reported in the year-ago quarter. For quarterly revenues, the consensus mark stands at $1,308 million, suggesting a decrease of 8.8% from the prior-year reported figure.
Factors to Note
Chipotle’s second-quarter results are likely to reflect impact of the coronavirus pandemic. The restaurant industry has been bearing the brunt of traffic weakness for a while now. The pandemic might have dented traffic and sales in the to-be-reported quarter. Moreover, comparable restaurant sales are also likely to be down in the second quarter owing to the pandemic.
However, the company has been shifting its strategy from giveaways, discounts and rewards to new menu items, operational excellence, enhancement of guest experience, technology-driven convenience and aggressive brand marketing. These sales-building efforts are likely to get reflected in the to-be-reported quarter’s results. The company has been increasing its focus on digital and delivery services owing to the shutting down of the dine-in facility in the wake of the virus outbreak.
Chipotle Mexican Grill, Inc. Price and EPS Surprise
Chipotle Mexican Grill, Inc. price-eps-surprise | Chipotle Mexican Grill, Inc. Quote
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Chipotle this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Chipotle has a Zacks Rank #2 and an Earnings ESP of +423.64%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Poised to Beat Earnings Estimates
Here are some other stocks from the Zacks Restaurant space that investors may consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
The Cheesecake Factory Incorporated (CAKE - Free Report) currently has a Zacks Rank #3 and an Earnings ESP of +50.50%.
Brinker International, Inc. (EAT - Free Report) has a Zacks Rank #3 and an Earnings ESP of +19.81%.
Starbucks Corporation (SBUX - Free Report) has a Zacks Rank #3 and an Earnings ESP of +3.04%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>