Chipotle (CMG) is on Zacks.com's most searched stocks list, but its recent performance has lagged the S&P 500 and its industry. While current quarter earnings are projected to decline 5.9% year-over-year, full-year estimates show an 8% increase, followed by a 17.8% increase next fiscal year; revenue is expected to grow. However, negative earnings estimate revisions and a Zacks Rank #4 (Sell) suggest potential near-term underperformance, further compounded by an 'F' grade in Zacks Value Style Score, indicating the stock is trading at a premium.
Chipotle Mexican Grill (CMG) has recently underperformed, returning +0.7% over the past month, significantly lagging the S&P 500 composite's +7.4% gain and the Zacks Retail - Restaurants industry's +2.1% rise. While projected revenue growth is positive (+4.4% for the current quarter, +8.1% for the current fiscal year, and +12.7% for the next), earnings estimates present a mixed near-term outlook. The current quarter's earnings are expected at $0.32 per share, a -5.9% decrease year-over-year, and the consensus estimate has been revised downwards by -2% in the last 30 days. For the full fiscal year, earnings are projected at $1.21 (+8% YoY), and for the next fiscal year at $1.42 (+17.8% YoY), though these estimates have also seen negative revisions of -1.2% and -0.7% respectively over the past month. Chipotle's last reported results showed revenues of $2.88 billion (+6.4% YoY), missing consensus by -1.49%, while EPS of $0.29 beat estimates by +3.57%. Reflecting the impact of these negative earnings estimate revisions, CMG holds a Zacks Rank #4 (Sell). Furthermore, its valuation appears stretched, as indicated by a Zacks Value Style Score of 'F', suggesting the stock is trading at a premium compared to its peers and intrinsic value.
AI-powered research, real-time alerts, and portfolio analytics for institutional investors.
Request a DemoOverall Sentiment
moderately negative
Sentiment Score
-0.50
Ticker Sentiment
