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Valued at a market cap of $77 billion, Chipotle Mexican Grill, Inc. (CMG) sells food and beverages, including burritos, burrito bowls, quesadillas, tacos, and salads. The Newport Beach, California-based company’s restaurants feature free-range, hormone-free pork, natural chicken, and other meat products cooked through traditional methods and served in a unique atmosphere. It is scheduled to announce its fiscal Q4 earnings results after the market closes on Tuesday, Feb. 4.
Ahead of this event, analysts project the restaurant company to report a profit of $0.24 per share, up 14.3% from $0.21 per share in the year-ago quarter. The company has a promising trajectory of consistently beating Wall Street's bottom-line estimates in the last four quarters. In Q3, CMG’s adjusted EPS of $0.27 outpaced the Wall Street estimates by a notable margin of 8%.
For fiscal 2024, analysts expect Chipotle to report an EPS of $1.11, up 23.3% from $0.90 in fiscal 2023.
Shares of CMG have gained 23.8% over the past 52 weeks, outpacing the S&P 500 Index's ($SPX) 22% rise but underperforming the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 27.7% return over the same time frame.
CMG’s shares plunged 7.9% following its Q3 earnings release on Oct. 29, as the company delivered a mixed performance. Its adjusted EPS of $0.27 per share increased 17.4% from the year-ago quarter and surpassed the Wall Street estimates by 8%. However, a 13% year-over-year revenue rise to $2.8 billion fell short of the forecast by 1.1%. The slowdown in comparable store growth primarily led to its top-line miss. Meanwhile, CMG’s initial outlook for 2025 unit openings also came below estimates. This might have further lowered investor confidence.
Wall Street analysts are moderately optimistic about Chipotle’s stock, with a "Moderate Buy" rating overall. Among 31 analysts covering the stock, 20 recommend "Strong Buy," two suggest “Moderate Buy,” and nine indicate “Hold.”
The average price target for CMG is $68.10, which indicates a 21% potential upside from the current levels.
