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Chipotle Mexican Grill (CMG) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest market close, Chipotle Mexican Grill (CMG - Free Report) reached $2,869.11, with a -1.34% movement compared to the previous day. This change lagged the S&P 500's 0.88% loss on the day. At the same time, the Dow added 0.56%, and the tech-heavy Nasdaq lost 2.05%.

The Mexican food chain's shares have seen an increase of 0.1% over the last month, surpassing the Retail-Wholesale sector's loss of 2.7% and the S&P 500's loss of 2.57%.

Analysts and investors alike will be keeping a close eye on the performance of Chipotle Mexican Grill in its upcoming earnings disclosure. The company's earnings report is set to go public on April 24, 2024. In that report, analysts expect Chipotle Mexican Grill to post earnings of $11.56 per share. This would mark year-over-year growth of 10.1%. Alongside, our most recent consensus estimate is anticipating revenue of $2.68 billion, indicating a 12.98% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $53.36 per share and revenue of $11.25 billion. These totals would mark changes of +18.95% and +13.95%, respectively, from last year.

Any recent changes to analyst estimates for Chipotle Mexican Grill should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.47% increase. Chipotle Mexican Grill is currently a Zacks Rank #3 (Hold).

Investors should also note Chipotle Mexican Grill's current valuation metrics, including its Forward P/E ratio of 54.5. This expresses a premium compared to the average Forward P/E of 21.02 of its industry.

We can additionally observe that CMG currently boasts a PEG ratio of 2.47. 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. The Retail - Restaurants was holding an average PEG ratio of 1.85 at yesterday's closing price.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 96, placing it within the top 39% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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