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.
An Early Preview of Chipotle's (CMG) Q1 Earnings Outlook
Read MoreHide Full Article
With Chipotle’s (CMG - Free Report) new CEO Brian Niccol at the helm, the first quarter could mark the start of a better era for the embattled fast casual chain. But before investors get too caught up in what Niccol might change long-term, they should look at what to expect from Chipotle’s upcoming first quarter financial results.
Chipotle’s new chief executive, and the former head of Yum Brands’ (YUM - Free Report) Taco Bell didn’t officially take over until early March. This means that any business innovations Niccol might have already implemented won’t have much impact on Chipotle’s Q1 earnings results.
Furthermore, amid this volatile market, investors should focus on finding stocks that are expected to post strong earnings results and avoid ones that aren’t.
With that said, let’s take a look at what to expect from Chipotle as we inch closer to its first quarter earnings report.
Outlook & Valuation
Chipotle’s Q1 revenues are projected to climb by 7.4% to reach $1.15 billion, based on our current Zacks Consensus Estimates. Meanwhile, the restaurant chain is expected to report quarterly earnings of $1.53 per share, which would mark a 4.4% decline from the year-ago period.
Investors should also note that Chipotle has earned four earnings estimate revisions, with 100% agreement to the downside, all within the last 60 days. However, the company’s Most Accurate Estimate is $1.55 per share. This means that estimates have come in higher as we get closer to Chipotle’s Q1 earnings.
Chipotle is currently trading with a Forward P/E of 36.1, which marks a substantial premium to the “Retail – Restaurants” industry’s average of 22.4.
Price Performance and Surprise History
Another important factor that investors might want to consider ahead of Chipotle’s Q1 earnings report is the company’s history of earnings surprises and the effect that these surprises have had on share prices.
Chipotle Mexican Grill, Inc. Price, Consensus and EPS Surprise
We can see that Chipotle’s earnings surprise history has been up and down over the last few years, which is to be expected amid a rough time for the company. It is also worth noting that Chipotle’s stock price has been highly volatile immediately following the release of its quarterly earnings results. In fact, over the last six periods, Chipotle stock has sunk in the near-term four times.
With that said, past performance does not necessarily indicate future success or failure, and we will have a better idea of where Chipotle stands closer to its report date, which is scheduled for April 25.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
An Early Preview of Chipotle's (CMG) Q1 Earnings Outlook
With Chipotle’s (CMG - Free Report) new CEO Brian Niccol at the helm, the first quarter could mark the start of a better era for the embattled fast casual chain. But before investors get too caught up in what Niccol might change long-term, they should look at what to expect from Chipotle’s upcoming first quarter financial results.
Chipotle’s new chief executive, and the former head of Yum Brands’ (YUM - Free Report) Taco Bell didn’t officially take over until early March. This means that any business innovations Niccol might have already implemented won’t have much impact on Chipotle’s Q1 earnings results.
Furthermore, amid this volatile market, investors should focus on finding stocks that are expected to post strong earnings results and avoid ones that aren’t.
With that said, let’s take a look at what to expect from Chipotle as we inch closer to its first quarter earnings report.
Outlook & Valuation
Chipotle’s Q1 revenues are projected to climb by 7.4% to reach $1.15 billion, based on our current Zacks Consensus Estimates. Meanwhile, the restaurant chain is expected to report quarterly earnings of $1.53 per share, which would mark a 4.4% decline from the year-ago period.
Investors should also note that Chipotle has earned four earnings estimate revisions, with 100% agreement to the downside, all within the last 60 days. However, the company’s Most Accurate Estimate is $1.55 per share. This means that estimates have come in higher as we get closer to Chipotle’s Q1 earnings.
Chipotle is currently trading with a Forward P/E of 36.1, which marks a substantial premium to the “Retail – Restaurants” industry’s average of 22.4.
Price Performance and Surprise History
Another important factor that investors might want to consider ahead of Chipotle’s Q1 earnings report is the company’s history of earnings surprises and the effect that these surprises have had on share prices.
Chipotle Mexican Grill, Inc. Price, Consensus and EPS Surprise
Chipotle Mexican Grill, Inc. Price, Consensus and EPS Surprise | Chipotle Mexican Grill, Inc. Quote
We can see that Chipotle’s earnings surprise history has been up and down over the last few years, which is to be expected amid a rough time for the company. It is also worth noting that Chipotle’s stock price has been highly volatile immediately following the release of its quarterly earnings results. In fact, over the last six periods, Chipotle stock has sunk in the near-term four times.
With that said, past performance does not necessarily indicate future success or failure, and we will have a better idea of where Chipotle stands closer to its report date, which is scheduled for April 25.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>