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Based in Newport Beach, California, Chipotle Mexican Grill, Inc. (CMG) is a prominent fast-casual restaurant chain known for its commitment to serving "Food with Integrity." With a market cap of $86.18 billion, CMG offers a menu focused on burritos, bowls, tacos, and salads made from high-quality, responsibly sourced ingredients. The company operates numerous locations across the U.S. and internationally, emphasizing sustainability and customer experience. CMG is set to announce its fiscal Q2 earnings results after the market closes on Wednesday, Jul. 24.
Ahead of the event, analysts expect CMG to report a profit of $0.31 per share, up 24% from $0.25 per share in the year-ago quarter. The company has consistently beaten or matched Wall Street’s EPS estimates in its last four quarterly reports.
Chipotle's adjusted earnings of $0.27 per share for the last reported quarter surpassed the consensus estimate by 17.4%. The company's strong Q1 2024 performance was driven by enhanced throughput and effective marketing initiatives, which resulted in robust sales and transaction growth.
For fiscal 2024, analysts expect CMG to report EPS of $1.11, up 23.3% from $0.90 in fiscal 2023.
CMG stock is up 37.2% on a YTD basis, outperforming the broader S&P 500 Index's ($SPX) 16.7% gains and the AdvisorShares Restaurant ETF’s (EATZ) 6.3% returns over the same time frame.
On Jun. 6, at Chipotle Mexican Grill's annual meeting, shareholders approved a significant stock split, one of the largest in NYSE history. Following the announcement, the market responded positively, with the stock rising by 2%.
CMG's robust market performance is fueled by consistent double-digit revenue growth, supported by aggressive expansion, including the opening of 271 new restaurants last year. The company has achieved 15 consecutive quarters of such growth despite inflationary pressures. Following its Q1 earnings report on Apr. 24, which revealed a 14.1% revenue increase and a 7% rise in same-store sales, CMG's shares surged over 6%.
The consensus opinion on CMG stock is optimistic, with an overall “Moderate Buy” rating. Out of 30 analysts covering the stock, 19 advise a “Strong Buy” rating, one recommends a “Moderate Buy,” and 10 suggest a “Hold.” This configuration is slightly more bullish than three months ago when the stock had 18 “Strong Buy” ratings.
CMG's average analyst price target is $65.12, indicating a potential upside of 3.8% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
