What You Need To Know Ahead of Chipotle Earnings Wednesday

Trending 2 months ago

Key Takeaways

  • Chipotle Mexican Grill is group to study net aft markets adjacent Wednesday, pinch analysts projecting gross and profit to emergence year-over-year.
  • The institution completed a monolithic 50-for-1 banal divided past month, and its banal has trended little successful nan days since.
  • Baird analysts wrote Sunday that nan accelerated casual concatenation is "well-positioned" to execute contempt an "otherwise difficult user spending backdrop."

Chipotle Mexican Grill (CMG) reports its latest quarterly results aft nan doorbell Wednesday, pinch analysts expecting gross and profits to emergence year-over-year successful nan chain's first net consequence since its 50-for-1 banal divided past month.

Analysts expect Chipotle's revenue to emergence 17% from year-over-year to $2.94 billion, pinch profits projected to emergence astir 28% to $437.8 million, according to estimates compiled by Visible Alpha.

Baird analysts wrote Sunday that they judge nan concatenation is well-positioned to proceed posting net thumps contempt an "otherwise difficult consumer spending backdrop" that has affected overmuch of nan economy, including some of Chipotle's competitors.

However, nan Baird analysts noted that immoderate indicators show request "softening" earlier this month.

Analyst Estimates for Q2 2024 Q1 2024 Q2 2023
Revenue $2.94 billion $2.7 billion $2.51 billion
Diluted EPS (Post-Split) 31 cents 26 cents 25 cents
Net Income $437.82 million $359.29 million $341.79 million

Key Metric: Comparable-Store Sales

Chipotle's past 2 quarterly results person been lifted by higher comparable-store sales, acknowledgment to higher prices and increased ft traffic. Baird analysts wrote that nan company's results should proceed to beryllium boosted by Chipotle's "strong and improving worth proposition."

The analysts noted that while Chipotle has raised prices, it has done truthful astatine a little complaint than astir of nan industry: The analysts recovered that nan costs of a chickenhearted burrito, nan chain's astir celebrated item, has risen astatine a slower complaint than nan consumer value index's (CPI) "food distant from home" ostentation gait complete nan past decade.

Business Spotlight: Performance Since Split, Announces CFO Retirement

The institution announced earlier this period that longtime Chief Financial Officer (CFO) Jack Hartung is retiring adjacent year, pinch his replacement, existent Vice President of Finance Adam Rymer, group to presume nan position successful January. Hartung, who has been Chipotle's CFO since 2002, will enactment pinch nan institution done March.

Chipotle completed its 50-for-1 banal divided past month. The institution said it wanted to make nan banal much accessible to labor and a wider scope of investors.

Shares of Chipotle were small changed Monday. They person moved almost 20% little since nan divided took effect June 26.

Investopedia requires writers to usage superior sources to support their work. These see achromatic papers, authorities data, original reporting, and interviews pinch manufacture experts. We besides reference original investigation from different reputable publishers wherever appropriate. You tin study much astir nan standards we travel successful producing accurate, unbiased contented successful our editorial policy.

More
Source investopedia
investopedia