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Chipotle Mexican Grill (CMG) Stock Sinks As Market Gains: Here's Why

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In the latest trading session, Chipotle Mexican Grill (CMG - Free Report) closed at $39.19, marking a -1.78% move from the previous day. This change lagged the S&P 500's 0.41% gain on the day. At the same time, the Dow added 0.18%, and the tech-heavy Nasdaq gained 0.31%.

Prior to today's trading, shares of the Mexican food chain had lost 5.32% lagged the Retail-Wholesale sector's gain of 1.09% and the S&P 500's gain of 3.15%.

The investment community will be closely monitoring the performance of Chipotle Mexican Grill in its forthcoming earnings report. The company is scheduled to release its earnings on October 29, 2025. The company is predicted to post an EPS of $0.29, indicating a 7.41% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $3.05 billion, up 9.2% from the prior-year quarter.

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 note any recent changes to analyst estimates for Chipotle Mexican Grill. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.11% decrease. At present, Chipotle Mexican Grill boasts a Zacks Rank of #3 (Hold).

With respect to valuation, Chipotle Mexican Grill is currently being traded at a Forward P/E ratio of 33.07. This represents a premium compared to its industry average Forward P/E of 23.58.

We can also see that CMG currently has a PEG ratio of 2.03. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Retail - Restaurants industry stood at 2.32 at the close of the market yesterday.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 199, placing it within the bottom 20% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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