HomeMost PopularAnticipating Chipotle Mexican Grill's Upcoming Earnings: Key Insights and Expectations

Anticipating Chipotle Mexican Grill’s Upcoming Earnings: Key Insights and Expectations

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Chipotle Gears Up for Q4 Earnings Report Amid Positive Analyst Forecasts

Chipotle Mexican Grill, Inc. (CMG), with a market cap of $77 billion, specializes in food and beverages like burritos, burrito bowls, quesadillas, tacos, and salads. Based in Newport Beach, California, the company prides itself on serving ethically sourced ingredients, such as free-range, hormone-free pork and natural chicken, all prepared using traditional cooking methods in a distinct atmosphere. The company is set to announce its fiscal Q4 earnings results after the market closes on Tuesday, February 4.

Analysts anticipate that Chipotle will report a profit of $0.24 per share, marking a 14.3% increase from $0.21 per share during the same quarter last year. Notably, Chipotle has consistently exceeded Wall Street’s expectations, achieving this in the last four quarters. In Q3, for example, its adjusted EPS of $0.27 surpassed estimates by a significant 8%.

Looking ahead to fiscal 2024, analysts project an EPS of $1.11, reflecting a 23.3% increase from $0.90 in fiscal 2023.

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Over the past 52 weeks, Chipotle’s shares have risen 23.8%. This performance exceeds the S&P 500 Index’s ($SPX) growth of 22% but falls short when compared to the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 27.7% return in the same period.

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After its Q3 earnings report on October 29, CMG’s stock fell 7.9%. While its adjusted EPS rose 17.4% year-over-year to $0.27, beating Wall Street expectations, the company reported a 13% increase in revenue to $2.8 billion, which was 1.1% below forecasts. The slowdown in comparable store growth contributed to this revenue miss. Additionally, CMG’s initial outlook for 2025 openings did not meet expectations, which may have impacted investor confidence further.

Overall, analysts have a moderately positive outlook for Chipotle, rating the stock as a “Moderate Buy.” Among the 31 analysts covering the company, 20 recommend a “Strong Buy,” two endorse a “Moderate Buy,” and nine suggest a “Hold.” The average price target for CMG is set at $68.10, indicating a potential upside of 21% from current levels.

On the date of publication, Neharika Jain 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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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