Chipotle Earnings: What To Look For From CMG

Petr Huřťák /
2024/02/05 2:01 am EST

Mexican fast-food chain Chipotle (NYSE:CMG) will be announcing earnings results tomorrow afternoon. Here's what to look for.

Last quarter Chipotle reported revenues of $2.47 billion, up 11.3% year on year, missing analyst expectations by 0.1%. It was a dcent quarter for the company, with an impressive beat of analysts' earnings estimates.

Is Chipotle buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Chipotle's revenue to grow 14.1% year on year to $2.49 billion, improving on the 11.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $9.73 per share.

Chipotle Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing eight upward revisions over the last thirty days. The company missed Wall St's revenue estimates five times over the last two years.

Looking at Chipotle's peers in the restaurants segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Brinker International delivered top-line growth of 5.4% year on year, missing analyst estimates by 0.4% and Kura Sushi reported revenues up 30.9% year on year, exceeding estimates by 0.1%. Brinker International traded flat on the results, and Kura Sushi was down 4.6%.

Read our full analysis of Brinker International's results here and Kura Sushi's results here.

Investors in the restaurants segment have had steady hands going into the earnings, with the stocks up on average 1.7% over the last month. Chipotle is up 11.3% during the same time, and is heading into the earnings with analyst price target of $2,444.4, compared to share price of $2,489.

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The author has no position in any of the stocks mentioned.