The Zacks Retail & Wholesale sector has struggled to find its footing in 2022, down 28% and lagging behind the S&P 500’s performance.
One of the most famous names in the sector, Chipotle Mexican Grill (CMG - Free Report) , is on deck to unveil quarterly results on October 25th after the market close.
Chipotle Mexican Grill, together with its subsidiaries, operates quick-casual and fresh Mexican food restaurant chains. We see their restaurants everywhere, and generally with packed customer lines.
Currently, the company sports a favorable Zacks Rank #2 (Buy) paired with an overall VGM Score of a B.
How does everything else stack up for the restaurant titan heading into the print? Let’s take a closer look.
Share Performance & Valuation
CMG shares have weathered a dark market cloud better than most in 2022, down roughly 12% vs. the general market’s decline of more than 22%.
Over the last three months, the price action has been stellar, with CMG shares tacking on a double-digit 14% in value and outperforming the S&P 500 in this timeframe as well.
Any relative strength is undoubtedly a highlight in a historically-volatile 2022.
Further, shares trade at a 4.9X forward price-to-sales ratio, above the five-year median of 4.2X and representing a 312% premium relative to the Zacks Retail and Wholesale sector.
CMG carries a Style Score of a D for Value.
Quarterly Estimates
Analysts have been bullish in their earnings outlook, with four positive earnings estimate revisions coming in over the last several months. The Zacks Consensus EPS Estimate of $9.11 suggests a Y/Y earnings uptick of nearly 30%.
Chipotle’s top-line is also in solid standing – the Zacks Consensus Sales Estimate of $2.2 billion indicates revenue growth of 14.4% from year-ago quarterly sales of $1.9 billion.
Quarterly Performance & Market Reactions
CMG has been on an impressive earnings streak, exceeding the Zacks Consensus EPS Estimate in six consecutive quarters. Just in its latest print, the restaurant titan registered a 3% bottom-line beat.
Revenue results have been primarily strong, with Chipotle penciling in four top-line beats across its previous five quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
In addition, it’s worth noting that shares have increased twice by double-digit percentages following two of its last three prints. Following the latest release, shares tacked on roughly 13% in value.
Putting Everything Together
CMG shares have displayed a valuable level of defense in 2022, and over the last three months, they’ve soared for a double-digit percentage gain.
The company’s valuation multiples could steer away value-focused investors; the company’s forward P/S ratio sits above the five-year median and Zacks sector average.
Analysts have been bullish on their earnings outlook, and estimates suggest notable Y/Y growth in both revenue and earnings.
CMG has consistently exceeded quarterly estimates, and the market cheered on its previous quarterly release.
Heading into the print, Chipotle Mexican Grill (CMG - Free Report) carries a Zacks Rank #2 (Buy) with an Earnings ESP Score of 2%.
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The Zacks Retail & Wholesale sector has struggled to find its footing in 2022, down 28% and lagging behind the S&P 500’s performance.
One of the most famous names in the sector, Chipotle Mexican Grill (CMG - Free Report) , is on deck to unveil quarterly results on October 25th after the market close.
Chipotle Mexican Grill, together with its subsidiaries, operates quick-casual and fresh Mexican food restaurant chains. We see their restaurants everywhere, and generally with packed customer lines.
Currently, the company sports a favorable Zacks Rank #2 (Buy) paired with an overall VGM Score of a B.
How does everything else stack up for the restaurant titan heading into the print? Let’s take a closer look.
Share Performance & Valuation
CMG shares have weathered a dark market cloud better than most in 2022, down roughly 12% vs. the general market’s decline of more than 22%.
Over the last three months, the price action has been stellar, with CMG shares tacking on a double-digit 14% in value and outperforming the S&P 500 in this timeframe as well.
Any relative strength is undoubtedly a highlight in a historically-volatile 2022.
Further, shares trade at a 4.9X forward price-to-sales ratio, above the five-year median of 4.2X and representing a 312% premium relative to the Zacks Retail and Wholesale sector.
CMG carries a Style Score of a D for Value.
Quarterly Estimates
Analysts have been bullish in their earnings outlook, with four positive earnings estimate revisions coming in over the last several months. The Zacks Consensus EPS Estimate of $9.11 suggests a Y/Y earnings uptick of nearly 30%.
Chipotle’s top-line is also in solid standing – the Zacks Consensus Sales Estimate of $2.2 billion indicates revenue growth of 14.4% from year-ago quarterly sales of $1.9 billion.
Quarterly Performance & Market Reactions
CMG has been on an impressive earnings streak, exceeding the Zacks Consensus EPS Estimate in six consecutive quarters. Just in its latest print, the restaurant titan registered a 3% bottom-line beat.
Revenue results have been primarily strong, with Chipotle penciling in four top-line beats across its previous five quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
In addition, it’s worth noting that shares have increased twice by double-digit percentages following two of its last three prints. Following the latest release, shares tacked on roughly 13% in value.
Putting Everything Together
CMG shares have displayed a valuable level of defense in 2022, and over the last three months, they’ve soared for a double-digit percentage gain.
The company’s valuation multiples could steer away value-focused investors; the company’s forward P/S ratio sits above the five-year median and Zacks sector average.
Analysts have been bullish on their earnings outlook, and estimates suggest notable Y/Y growth in both revenue and earnings.
CMG has consistently exceeded quarterly estimates, and the market cheered on its previous quarterly release.
Heading into the print, Chipotle Mexican Grill (CMG - Free Report) carries a Zacks Rank #2 (Buy) with an Earnings ESP Score of 2%.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
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