428.00 -3.19 (-0.74%)
Pre-Market: 7:52AM EDT
|Bid||428.36 x 1100|
|Ask||429.90 x 3200|
|Day's Range||426.72 - 437.00|
|52 Week Range||247.52 - 530.68|
|Beta (3Y Monthly)||0.48|
|PE Ratio (TTM)||71.46|
|Earnings Date||Oct 25, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||466.29|
Seeking a scapegoat for October’s stock market convulsions? Try the dark cloud looming on the horizon known as peak earnings growth. With profit growth poised to slow sharply in 2019 for a number of reasons – chief among them less of a jolt from the Trump tax cuts – the market swoon happening today likely reflects the bottom line reality ahead.
Of the 32 analysts covering Chipotle Mexican Grill (CMG) stock, 31.3% are recommending a “buy” as of October 19. About 53.1% are recommending a “hold,” and 15.6% are recommending a “sell.” That same day, analysts set an average price target of $446.50, which represents an upside potential of 8.9% from $428.54.
For the third quarter, analysts expect Chipotle Mexican Grill (CMG) to post EPS of $2.02, which represents a 51.5% rise from $1.33 in Q3 2017. EPS growth could likely be driven by revenue growth and an expansion of net margins. Analysts expect Chipotle’s net margin to improve from 1.7% in the third-quarter of 2017 to 4.6% in the third quarter of 2018.
The RBC analyst cited a recent survey from the investment bank in which over 1,000 respondents answered questions regarding their experience with Chipotle. The study found that Chipotle remains in the top three favorite chains of all quick-service restaurants, an impressive feat given a series of foodborne illness scares that have weighed heavily on foot traffic and beaten down the stock since 2015.
Analysts expect Chipotle Mexican Grill (CMG) to post revenues of $1.24 billion in the third quarter, which is a 9.5% growth from $1.13 billion in Q3 2017. Chipotle’s revenue growth is expected to be driven by the addition of new restaurants and positive SSSG (same-store sales growth). By the end of the second quarter, Chipotle operated 2,427 restaurants, which is 97 more than 2,330 at the end of the third quarter of 2017.
Chipotle Mexican Grill (CMG) is scheduled to post its third-quarter earnings after the market closes on October 25. As of October 19, the stock was trading at $428.54, which represents a fall of 5.1% since the announcement of its second-quarter earnings on July 26.
The restaurant chain’s shares have gained nearly 50% so far this year. A disappointing Q3 may not break their stride.
Chipotle failed to "give consumers a reason" to visit its stores since a 2015 food safety outbreak, Palmer said. RBC's proprietary survey found that 16 percent of respondents haven't eaten at Chipotle in the past six months due to food safety concerns. Also, 21 percent of respondents said improved food safety and quality would encourage them to eat at Chipotle more often.