We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Chipotle (CMG) Gears Up for Q1 Earnings: What's in Store?
Read MoreHide Full Article
Chipotle Mexican Grill, Inc. (CMG - Free Report) is scheduled to report first-quarter 2023 results on Apr 25. In the last reported quarter, the company missed earnings estimates by 6.6%.
How Are Estimates Placed?
The Zacks Consensus Estimate for earnings is pegged at $8.89 per share, indicating growth of 56% from $5.70 registered in the year-ago quarter. For revenues, the Zacks Consensus Estimate is pegged at $2,334 million, suggesting an increase of 15.5% from the prior-year quarter’s figure.
Let’s check out the factors that are likely to have influenced the quarter to be reported.
Factors at Play
Chipotle's first-quarter performance is likely to have benefited from robust digital sales, an increase in menu prices and new restaurant openings. Robust comp growth, and food and beverage revenues are likely to have aided the company’s performance in the quarter under review.
We expect food and beverage revenues to increase 15.2% year over year to $2,303.2 million. However, delivery service revenues are expected to be $20.7 million, down 4% year over year.
Our model estimates comparable restaurant sales to increase 8.4%. Restaurant-level margin is likely to be 24.8% compared with 20.7% reported in the prior-year quarter.
CMG, like other industry players, has been facing significant supply-chain challenges and inflation across most commodities and categories. The benefit of a hike in menu prices is likely to be partially offset by inflation across the menu, primarily due to higher costs of avocados, dairy, beef, chicken and packaging. Our model predicts, food, beverage and packaging costs to be $691.1 million, up 10.4% year over year.
Chipotle Mexican Grill, Inc. Price and EPS Surprise
Our proven model predicts an earnings beat for Chipotle this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Chipotle has an Earnings ESP of +1.48%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #3 at present.
Other Stocks Poised to Beat Earnings Estimates
Here are some other stocks from the Zacks Retail - Restaurants industry that investors may consider as our model shows that these too have the right combination of elements to post an earnings beat in the quarter to be reported.
McDonald's Corporation (MCD - Free Report) currently has an Earnings ESP of +1.48% and a Zacks Rank #3.
MCD’s earnings beat the consensus mark in all the trailing four quarters, the average being 4.6%. Earnings for the to-be-reported quarter are expected to increase 4.3% year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Starbucks Corporation (SBUX - Free Report) has an Earnings ESP of +2.73% and a Zacks Rank #3.
SBUX’s earnings beat the consensus mark in two of the last four quarters and missed twice. It has a trailing four-quarter earnings surprise of 4%, on average.
The Wendy's Company (WEN - Free Report) currently has an Earnings ESP of +4.48% and a Zacks Rank #3.
WEN’s earnings beat the consensus mark in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 4.5%, on average. Earnings for the to-be-reported quarter are expected to increase 17.7% year over year.
Image: Bigstock
Chipotle (CMG) Gears Up for Q1 Earnings: What's in Store?
Chipotle Mexican Grill, Inc. (CMG - Free Report) is scheduled to report first-quarter 2023 results on Apr 25. In the last reported quarter, the company missed earnings estimates by 6.6%.
How Are Estimates Placed?
The Zacks Consensus Estimate for earnings is pegged at $8.89 per share, indicating growth of 56% from $5.70 registered in the year-ago quarter. For revenues, the Zacks Consensus Estimate is pegged at $2,334 million, suggesting an increase of 15.5% from the prior-year quarter’s figure.
Let’s check out the factors that are likely to have influenced the quarter to be reported.
Factors at Play
Chipotle's first-quarter performance is likely to have benefited from robust digital sales, an increase in menu prices and new restaurant openings. Robust comp growth, and food and beverage revenues are likely to have aided the company’s performance in the quarter under review.
We expect food and beverage revenues to increase 15.2% year over year to $2,303.2 million. However, delivery service revenues are expected to be $20.7 million, down 4% year over year.
Our model estimates comparable restaurant sales to increase 8.4%. Restaurant-level margin is likely to be 24.8% compared with 20.7% reported in the prior-year quarter.
CMG, like other industry players, has been facing significant supply-chain challenges and inflation across most commodities and categories. The benefit of a hike in menu prices is likely to be partially offset by inflation across the menu, primarily due to higher costs of avocados, dairy, beef, chicken and packaging. Our model predicts, food, beverage and packaging costs to be $691.1 million, up 10.4% year over year.
Chipotle Mexican Grill, Inc. Price and EPS Surprise
Chipotle Mexican Grill, Inc. price-eps-surprise | Chipotle Mexican Grill, Inc. Quote
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Chipotle this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Chipotle has an Earnings ESP of +1.48%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #3 at present.
Other Stocks Poised to Beat Earnings Estimates
Here are some other stocks from the Zacks Retail - Restaurants industry that investors may consider as our model shows that these too have the right combination of elements to post an earnings beat in the quarter to be reported.
McDonald's Corporation (MCD - Free Report) currently has an Earnings ESP of +1.48% and a Zacks Rank #3.
MCD’s earnings beat the consensus mark in all the trailing four quarters, the average being 4.6%. Earnings for the to-be-reported quarter are expected to increase 4.3% year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Starbucks Corporation (SBUX - Free Report) has an Earnings ESP of +2.73% and a Zacks Rank #3.
SBUX’s earnings beat the consensus mark in two of the last four quarters and missed twice. It has a trailing four-quarter earnings surprise of 4%, on average.
The Wendy's Company (WEN - Free Report) currently has an Earnings ESP of +4.48% and a Zacks Rank #3.
WEN’s earnings beat the consensus mark in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 4.5%, on average. Earnings for the to-be-reported quarter are expected to increase 17.7% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.