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Factors Setting the Tone for Chipotle's (CMG) Q4 Earnings
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Chipotle Mexican Grill, Inc. (CMG - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 2, 2021, after market close. In the last reported quarter, the company delivered an earnings surprise of 9.3%.
How Are Estimates Trending?
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $3.71, which indicates growth of 29.7% from $2.86 registered in the year-ago quarter. For revenues, the consensus mark is pegged at nearly $1,609 million that suggests increase of 11.7% from the prior-year quarter’s figure.
Let’s discuss factors that are likely to get reflected in the quarter to be reported.
Chipotle Mexican Grill, Inc. Price and EPS Surprise
Increased focus on Chipotlanes, restaurant design and development, enhancement of guest experience, delivery services, technology-driven convenience as well as more aggressive brand marketing are likely to have boosted the fourth-quarter top line. Moreover, collaboration with all major third-party delivery aggregators continues to drive orders. Notably, the company expects the momentum to continue during the fourth quarter of 2020, thereby expecting digital sales to cross $2.5 billion in 2020.
Moreover, Chipotle’s fourth-quarter margins are likely to be supported by a hike in delivery menu prices. Notably, the company anticipates sequential improvement in margins (by approximately 200 basis points) in the to-be-reported quarter. The company’s performance in the quarter is likely to reflect the benefits from higher comps.
Although majority of the company’s dining rooms are open, dismal footfall on account of the pandemic is likely to have affected the company’s performance in the quarter.
What Our Model Says
Our proven model does not conclusively predict 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. But that's not the case here.
Earnings ESP: Chipotle has an Earnings ESP of -0.67%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks from the Zacks Retail-Wholesale space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Yum! Brands, Inc. (YUM - Free Report) currently carries a Zacks Rank #2 and has an Earnings ESP of +1.62%.
Wingstop Inc. (WING - Free Report) carries a Zacks Rank #3 and has an Earnings ESP of +20.00%.
Papa John's International, Inc. (PZZA - Free Report) carries a Zacks Rank #3 and has an Earnings ESP of +1.48%.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Factors Setting the Tone for Chipotle's (CMG) Q4 Earnings
Chipotle Mexican Grill, Inc. (CMG - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 2, 2021, after market close. In the last reported quarter, the company delivered an earnings surprise of 9.3%.
How Are Estimates Trending?
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $3.71, which indicates growth of 29.7% from $2.86 registered in the year-ago quarter. For revenues, the consensus mark is pegged at nearly $1,609 million that suggests increase of 11.7% from the prior-year quarter’s figure.
Let’s discuss factors that are likely to get reflected in the quarter to be reported.
Chipotle Mexican Grill, Inc. Price and EPS Surprise
Chipotle Mexican Grill, Inc. price-eps-surprise | Chipotle Mexican Grill, Inc. Quote
Factors at Play
Increased focus on Chipotlanes, restaurant design and development, enhancement of guest experience, delivery services, technology-driven convenience as well as more aggressive brand marketing are likely to have boosted the fourth-quarter top line. Moreover, collaboration with all major third-party delivery aggregators continues to drive orders. Notably, the company expects the momentum to continue during the fourth quarter of 2020, thereby expecting digital sales to cross $2.5 billion in 2020.
Moreover, Chipotle’s fourth-quarter margins are likely to be supported by a hike in delivery menu prices. Notably, the company anticipates sequential improvement in margins (by approximately 200 basis points) in the to-be-reported quarter. The company’s performance in the quarter is likely to reflect the benefits from higher comps.
Although majority of the company’s dining rooms are open, dismal footfall on account of the pandemic is likely to have affected the company’s performance in the quarter.
What Our Model Says
Our proven model does not conclusively predict 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. But that's not the case here.
Earnings ESP: Chipotle has an Earnings ESP of -0.67%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Retail-Wholesale space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Yum! Brands, Inc. (YUM - Free Report) currently carries a Zacks Rank #2 and has an Earnings ESP of +1.62%.
Wingstop Inc. (WING - Free Report) carries a Zacks Rank #3 and has an Earnings ESP of +20.00%.
Papa John's International, Inc. (PZZA - Free Report) carries a Zacks Rank #3 and has an Earnings ESP of +1.48%.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>