Mexican fast-food chain Chipotle (NYSE: CMG) will be reporting results this Wednesday afternoon. Here’s what you need to know.
Chipotle missed analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $3.06 billion, up 3% year on year. It was a slower quarter for the company, with a slight miss of analysts’ revenue estimates and a slight miss of analysts’ same-store sales estimates.
Is Chipotle a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Chipotle’s revenue to grow 8.1% year on year to $3.02 billion, slowing from the 13% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.29 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 five times over the last two years.
Looking at Chipotle’s peers in the restaurants segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Domino's delivered year-on-year revenue growth of 6.2%, beating analysts’ expectations by 0.9%, and Darden reported revenues up 10.4%, in line with consensus estimates. Domino's traded up 2.2% following the results while Darden was down 11.6%.
Read our full analysis of Domino’s results here and Darden’s results here.
Investors in the restaurants segment have had steady hands going into earnings, with share prices flat over the last month. Chipotle is up 3% during the same time and is heading into earnings with an average analyst price target of $53.30 (compared to the current share price of $41.10).
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