Mexican fast-food chain Chipotle (NYSE: CMG) will be reporting earnings tomorrow after market hours. Here’s what to look for.
Chipotle met analysts’ revenue expectations last quarter, reporting revenues of $2.85 billion, up 13.1% year on year. It was a slower quarter for the company, with a slight miss of analysts’ EBITDA estimates and same-store sales in line with analysts’ estimates.
Is Chipotle a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Chipotle’s revenue to grow 8.9% year on year to $2.94 billion, slowing from the 14.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.28 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Chipotle has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Chipotle’s peers in the restaurants segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Darden delivered year-on-year revenue growth of 6.2%, missing analysts’ expectations by 1.7%, and Kura Sushi reported revenues up 13.3%, in line with consensus estimates. Darden traded up 6.2% following the results while Kura Sushi was also up 31.8%.
Read our full analysis of Darden’s results here and Kura Sushi’s results here.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
