Mexican fast-food chain Chipotle (NYSE: CMG) will be announcing earnings results this Wednesday after the bell. Here’s what you need to know.
Chipotle beat analysts’ revenue expectations last quarter, reporting revenues of $2.98 billion, up 4.9% year on year. It was a strong quarter for the company, with same-store sales in line with analysts’ estimates and a decent beat of analysts’ EBITDA estimates.
Is Chipotle a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Chipotle’s revenue to grow 6.8% year on year, in line with the 6.4% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. Chipotle has missed Wall Street’s revenue estimates multiple 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. Kura Sushi delivered year-on-year revenue growth of 23.3%, beating analysts’ expectations by 2.5%, and Darden reported revenues up 5.9%, in line with consensus estimates. Kura Sushi traded down 17.8% following the results while Darden was up 1.2%.
Read our full analysis of Kura Sushi’s results here and Darden’s results here.
There has been positive sentiment among investors in the restaurants segment, with share prices up 12.1% on average over the last month. Chipotle is up 8.4% during the same time and is heading into earnings with an average analyst price target of $43.66 (compared to the current share price of $33.78).
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