Financial News
Chipotle Earnings: What To Look For From CMG
Mexican fast-food chain Chipotle (NYSE:CMG) will be reporting results tomorrow afternoon. Here’s what you need to know.
Chipotle beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $2.97 billion, up 18.2% year on year. It was a strong quarter for the company, with a decent beat of analysts’ EBITDA estimates.
Is Chipotle a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Chipotle’s revenue to grow 14% year on year to $2.82 billion, improving from the 11.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.25 per share.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 11 upward revisions over the last 30 days (we track 28 analysts). Chipotle has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Chipotle’s peers in the restaurants segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Domino's delivered year-on-year revenue growth of 5.1%, missing analysts’ expectations by 1.6%, and Texas Roadhouse reported revenues up 13.5%, in line with consensus estimates. Domino's traded up 4% following the results while Texas Roadhouse was also up 3.6%.
Read our full analysis of Domino’s results here and Texas Roadhouse’s results here.
There has been positive sentiment among investors in the restaurants segment, with share prices up 2.5% on average over the last month. Chipotle is up 3.2% during the same time and is heading into earnings with an average analyst price target of $63.59 (compared to the current share price of $59.44).
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