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Chipotle's (CMG) Q1 Earnings to Reflect Coronavirus Impact
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Chipotle Mexican Grill, Inc. (CMG - Free Report) is scheduled to report first-quarter 2020 results on Apr 21, after market close. In the last reported quarter, the company delivered a positive earnings surprise of 4.4%. Further, the company has a trailing four-quarter positive earnings surprise of 11.2%, on average.
How Are Estimates Trending?
The Zacks Consensus Estimate for first-quarter earnings is pegged at $2.80. This indicates 17.7% decline from $3.40 registered in the year-ago quarter. For quarterly revenues, the consensus mark stands at $1,425 million that suggests growth of 8.9% from the prior-year quarter’s figure.
Let’s discuss the factors that are likely to get reflected in the quarter to be reported.
Factors at Play
Chipotle Mexican Grill, Inc. Price and EPS Surprise
Chipotle’s first-quarter 2020 performance is likely to reflect impacts of the coronavirus outbreak. Decline in store traffic in the second-half of March is expected to have made an impact in first-quarter 2020 results. To contain the spread of this deadly virus, the company closed its dine-in services and is only operating through takeout as well as delivery options.
However, the company has been shifting its strategy from giveaways, discounts and rewards to new menu items, operational excellence, enhancement of guest experience, technology-driven convenience as well as more aggressive brand marketing. These sales-building efforts are likely to have driven the company’s top line in the quarter to be reported.
What Our Model Says
Our proven model does not predict 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 chances of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other stocks from the Zacks Retail-Wholesale space that investors may consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Sprouts Farmers Market, Inc. (SFM - Free Report) currently sports a Zacks Rank #1 and has an Earnings ESP of +20.00%.
Wayfair Inc. (W - Free Report) carries a Zacks rank #2 and has an Earnings ESP of +2.62%.
Yum China Holdings Inc. (YUMC - Free Report) sports a Zacks Rank #3 and has an Earnings ESP of +18.37%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Chipotle's (CMG) Q1 Earnings to Reflect Coronavirus Impact
Chipotle Mexican Grill, Inc. (CMG - Free Report) is scheduled to report first-quarter 2020 results on Apr 21, after market close. In the last reported quarter, the company delivered a positive earnings surprise of 4.4%. Further, the company has a trailing four-quarter positive earnings surprise of 11.2%, on average.
How Are Estimates Trending?
The Zacks Consensus Estimate for first-quarter earnings is pegged at $2.80. This indicates 17.7% decline from $3.40 registered in the year-ago quarter. For quarterly revenues, the consensus mark stands at $1,425 million that suggests growth of 8.9% from the prior-year quarter’s figure.
Let’s discuss the factors that are likely to get reflected in the quarter to be reported.
Factors at Play
Chipotle Mexican Grill, Inc. Price and EPS Surprise
Chipotle Mexican Grill, Inc. price-eps-surprise | Chipotle Mexican Grill, Inc. Quote
Chipotle’s first-quarter 2020 performance is likely to reflect impacts of the coronavirus outbreak. Decline in store traffic in the second-half of March is expected to have made an impact in first-quarter 2020 results. To contain the spread of this deadly virus, the company closed its dine-in services and is only operating through takeout as well as delivery options.
However, the company has been shifting its strategy from giveaways, discounts and rewards to new menu items, operational excellence, enhancement of guest experience, technology-driven convenience as well as more aggressive brand marketing. These sales-building efforts are likely to have driven the company’s top line in the quarter to be reported.
What Our Model Says
Our proven model does not predict 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 chances of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Chipotle has an Earnings ESP of -8.76% and a Zacks Rank #5 (Strong Sell). The combination makes surprise prediction difficult for the stock. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some other stocks from the Zacks Retail-Wholesale space that investors may consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Sprouts Farmers Market, Inc. (SFM - Free Report) currently sports a Zacks Rank #1 and has an Earnings ESP of +20.00%.
Wayfair Inc. (W - Free Report) carries a Zacks rank #2 and has an Earnings ESP of +2.62%.
Yum China Holdings Inc. (YUMC - Free Report) sports a Zacks Rank #3 and has an Earnings ESP of +18.37%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>