Earnings Preview: Chipotle Mexican Grill

Chipotle Mexican Grill CMG is preparing to release its quarterly earnings on Wednesday, 2025-04-23. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Chipotle Mexican Grill to report an earnings per share (EPS) of $0.28.

Anticipation surrounds Chipotle Mexican Grill's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Historical Earnings Performance

In the previous earnings release, the company missed EPS by $0.00, leading to a 2.56% drop in the share price the following trading session.

Here's a look at Chipotle Mexican Grill's past performance and the resulting price change:

Tracking Chipotle Mexican Grill's Stock Performance

Shares of Chipotle Mexican Grill were trading at $46.53 as of April 21. Over the last 52-week period, shares are down 19.89%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Opinions on Chipotle Mexican Grill

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Chipotle Mexican Grill.

Analysts have given Chipotle Mexican Grill a total of 25 ratings, with the consensus rating being Outperform. The average one-year price target is $64.04, indicating a potential 37.63% upside.

Comparing Ratings Among Industry Peers

This comparison focuses on the analyst ratings and average 1-year price targets of DoorDash, Darden Restaurants and Texas Roadhouse, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for DoorDash, with an average 1-year price target of $217.1, suggesting a potential 366.58% upside.
• Analysts currently favor an Neutral trajectory for Darden Restaurants, with an average 1-year price target of $209.8, suggesting a potential 350.89% upside.
• Analysts currently favor an Neutral trajectory for Texas Roadhouse, with an average 1-year price target of $187.64, suggesting a potential 303.27% upside.

Peer Metrics Summary

The peer analysis summary presents essential metrics for DoorDash, Darden Restaurants and Texas Roadhouse, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Chipotle Mexican Grill ranks at the top for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.

Delving into Chipotle Mexican Grill's Background

Chipotle Mexican Grill is the largest fast-casual chain restaurant in the United States, with systemwide sales of $11.3 billion in 2024. The Mexican concept is almost exclusively company-owned, with just three license stores operated through a master franchise relationship with Alshaya Group in the Middle East. It had a footprint of 3,726 stores at the end of 2024, heavily indexed to the United States, although it maintains a small presence in Canada, the UK, France, and Germany. Chipotle sells burritos, burrito bowls, tacos, quesadillas, and beverages, with a selling proposition built around competitive prices, high-quality food sourcing, speed of service, and convenience. The company generates its revenue entirely from restaurant sales and delivery fees.

Key Indicators: Chipotle Mexican Grill's Financial Health

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Positive Revenue Trend: Examining Chipotle Mexican Grill's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 13.07% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 11.66%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Chipotle Mexican Grill's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 9.13%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Chipotle Mexican Grill's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.64% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a below-average debt-to-equity ratio of 1.24, Chipotle Mexican Grill adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Chipotle Mexican Grill visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.