Mexican fast-food chain Chipotle (NYSE:CMG) will be reporting earnings this Wednesday after market hours. Here’s what investors should know.
Chipotle missed analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $2.88 billion, up 6.4% year on year. It was a slower quarter for the company, with a miss of analysts’ same-store sales 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 4.6% year on year to $3.11 billion, slowing from the 18.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.33 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 11 downward revisions over the last 30 days (we track 26 analysts). 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 Q2 results, giving us a hint as to what we can expect. Kura Sushi delivered year-on-year revenue growth of 17.3%, beating analysts’ expectations by 2.5%, and Darden reported revenues up 10.6%, in line with consensus estimates. Kura Sushi traded down 11.8% following the results while Darden’s stock price was unchanged.
Read our full analysis of Kura Sushi’s results here and Darden’s results here.
Investors in the restaurants segment have had steady hands going into earnings, with share prices up 1.9% on average over the last month. Chipotle is down 2.2% during the same time and is heading into earnings with an average analyst price target of $59.87 (compared to the current share price of $52.60).
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