Back to top

Image: Bigstock

Restaurant Stock Earnings: Chipotle (CMG) vs. Domino's (DPZ)

Read MoreHide Full Article

In this video, we discuss two restaurant stocks that have seen very different trading lately, Chipotle (CMG - Free Report) and Domino’s (DPZ - Free Report) . And while they are both giants in this respective categories, recent trends couldn’t be more different for the duo.

First up, let’s take a look at CMG where every investor is asking, ‘is the worst over?’ Unfortunately, thanks to a Zacks Rank #4 (sell) rating and a ‘D’ VGM score, the outlook isn’t very good for this troubled company. Additionally, recent earnings estimates have been sharply lower suggesting that analysts are becoming more bearish on the company’s earnings outlook heading into the report (for more on how to trade CMG, make sure to watch How to Trade Chipotle Mexican Grill (CMG - Free Report) Stock Ahead of Earnings.

CHIPOTLE MEXICN Price and Consensus

CHIPOTLE MEXICN Price and Consensus | CHIPOTLE MEXICN Quote

Domino’s has seen a very different story as their amazing pan pizza (really it is good!) has caught on, while their embrace of technology has really paid off. However, others are finally starting to catch on, which could be a problem for DPZ ahead, and especially so given their incredible run over the past few years.

DOMINOS PIZZA Price and Consensus

DOMINOS PIZZA Price and Consensus | DOMINOS PIZZA Quote

Still, DPZ seems like the better bet this earnings season as the company at least has a Zacks Rank #3 (hold) while it has a better fundamental outlook as well. And with the health issues still hanging over CMG, it is hard to take more than a small position in that stock ahead of earnings, especially with current fundamentals.

Make sure to watch the video for more insights on both of these companies, as well as a more thorough discussion of their charts. And if you’d like more information on how to trade earnings reports, make sure to check out our podcast below:


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Chipotle Mexican Grill, Inc. (CMG) - free report >>

Domino's Pizza Inc (DPZ) - free report >>