Chipotle Mexican Grill (CMG) closed at $1,275.57 in the last trading session, posting a move of 1.12% from the day before. This change outpaced the S&P 500’s 0.45% loss on the day. Elsewhere, the Dow Jones lost 0.67%, while the big tech Nasdaq lost 0.05%.
Ahead of today’s trading, shares of the Mexican food chain are up 4.77% over the past month. This outpaced the retail and wholesale sector’s 0.6% loss and the S&P 500’s 1.89% loss in that time.
Investors are hoping for strength from Chipotle Mexican Grill as it nears its next earnings release, which is expected on July 26, 2022. The company is expected to report earnings per share of $9.05, up 21.31% from the previous quarter. Meanwhile, our latest consensus estimate is for revenue of $2.24 billion, an increase of 18.59% over the prior year quarter.
For the full year, our Zacks Consensus estimates forecast earnings of $31.32 per share and revenue of $8.78 billion, representing changes of +23.21% and +16.39%, respectively, from the prior year.
It’s also important to note recent changes in analyst estimates for Chipotle Mexican Grill. These reviews usually reflect the latest short-term business trends, which can change frequently. With this in mind, we can take the positive rating reviews as a sign of optimism about the company’s business outlook.
Our research shows that these discretionary changes are directly correlated with near-term stock prices. We developed Zacks Rank to take advantage of this phenomenon. Our system takes these discretionary changes into account and provides a clear and actionable rating model.
The Zacks Rank system ranges from #1 (strong buy) to #5 (strong sell). The company has a proven track record of success, subject to external scrutiny, with the No. 1 stock having generated an average annual return of over 25% since 1988. In the past 30 days, our consolidated EPS forecast is down 0.76%. Chipotle Mexican Grill is currently Zacks ranked No. 3 (Hold).
Given its valuation, Chipotle Mexican Grill maintains a forward P/E ratio of 40.28. For comparison, its industry has an average forward P/E of 18.96, which means Chipotle Mexican Grill is trading at a premium to the group.
Meanwhile, the PEG ratio for CMG is currently 1.74. The P/E ratio is similar to the widely used P/E ratio, but this metric also takes into account the company’s expected earnings growth rate. Retail Segment – Restaurants The average price-to-growth and currency ratio for the restaurant segment is currently 1.74 as of yesterday’s close.
The retail-restaurant sector is part of the retail-wholesale sector. The industry currently has a Zacks Industry Rating of 210, which places it in the lowest 17% of all 250-plus industries.
The Zacks Industry Ranking measures the strength of our individual industry groups by measuring the average Zacks rating of the individual stocks within the groups. Our research shows that the top 50% ranked industries outperform the bottom half by a factor of 2 to 1.
You can find more information about all of these metrics and more at Zacks.com.
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Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis Report
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