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Chipotle Mexican Grill (CMG) Laps the Stock Market: Here's Why

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Chipotle Mexican Grill (CMG - Free Report) ended the recent trading session at $40.13, demonstrating a +2.06% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.44%. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, added 0.7%.

The Mexican food chain's stock has dropped by 9.9% in the past month, falling short of the Retail-Wholesale sector's gain of 2.16% and the S&P 500's gain of 4.03%.

The investment community will be paying close attention to the earnings performance of Chipotle Mexican Grill in its upcoming release. The company is slated to reveal its earnings on October 29, 2025. The company's earnings per share (EPS) are projected to be $0.29, reflecting a 7.41% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.05 billion, up 9.2% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $1.21 per share and a revenue of $12.12 billion, demonstrating changes of +8.04% and +7.13%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Chipotle Mexican Grill. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.11% downward. Chipotle Mexican Grill is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Chipotle Mexican Grill has a Forward P/E ratio of 32.59 right now. This valuation marks a premium compared to its industry average Forward P/E of 23.46.

One should further note that CMG currently holds a PEG ratio of 2. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Restaurants industry currently had an average PEG ratio of 2.27 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 190, placing it within the bottom 24% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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