Market Overview

Earnings Outlook for Chipotle Mexican Grill


Chipotle Mexican Grill (NYSE: CMG) unveils its next round of earnings this Wednesday, October 21. Here is Benzinga's everything-that-matters guide for the earnings announcement.

What Are Earnings, Net Income and Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings and Revenue

Chipotle Mexican Grill EPS is expected to be around $3.37, according to sell-side analysts. Sales will likely be near $1.58 billion. Chipotle Mexican Grill earnings in the same period a year ago was $3.82 per share. Quarterly sales came in at $1.40 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a given company yields the "consensus estimates." If the company posts earnings or revenue above or below the consensus estimate, the stock may move by a considerable margin.

If the company were to report earnings in line when it publishes results Wednesday, earnings would be down 11.78%. Revenue would be up 12.54% from the year-ago period. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.19 2.90 2.75 3.19
EPS Actual 0.40 3.08 2.86 3.82
Revenue Estimate 1.32 B 1.42 B 1.40 B 1.38 B
Revenue Actual 1.36 B 1.41 B 1.44 B 1.40 B

Stock Performance

Over the last 52-week period, shares are up 70.3%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Chipotle Mexican Grill is scheduled to hold the call at 16:30:00 ET and can be accessed here:


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Posted-In: Earnings