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Chipotle Mexican Grill (CMG) Dips More Than Broader Markets: What You Should Know

Chipotle Mexican Grill (CMG) closed at $1,531.99 in the latest trading session, marking a -1.64% move from the prior day. This change lagged the S&P 500's daily loss of 1.03%. At the same time, the Dow lost 1.11%, and the tech-heavy Nasdaq gained 0.02%.

Prior to today's trading, shares of the Mexican food chain had lost 4.32% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 10.27% and the S&P 500's loss of 10.4% in that time.

Investors will be hoping for strength from Chipotle Mexican Grill as it approaches its next earnings release, which is expected to be October 25, 2022. In that report, analysts expect Chipotle Mexican Grill to post earnings of $9.06 per share. This would mark year-over-year growth of 29.06%. Meanwhile, our latest consensus estimate is calling for revenue of $2.23 billion, up 14.41% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $32.50 per share and revenue of $8.74 billion. These totals would mark changes of +27.85% and +15.79%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Chipotle Mexican Grill. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Chipotle Mexican Grill currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Chipotle Mexican Grill is holding a Forward P/E ratio of 47.92. This represents a premium compared to its industry's average Forward P/E of 18.47.

It is also worth noting that CMG currently has a PEG ratio of 1.8. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 1.83 at yesterday's closing price.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 178, putting it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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