Chipotle Q2 results are Tuesday. What to expect.
Mexican Grill Chipotle
will release second-quarter results after regular trading closes on Tuesday, and many analysts are predicting results for the burrito chain, as the stock rallied to all-time highs.
The consensus estimates that Chipotle (ticker: CMG) earns $ 6.53 per share, on revenue of $ 1.88 billion. This is an increase from EPS of $ 5.36 and revenue of $ 1.74 billion in the previous quarter.
Several analysts expect Chipotle to post strong results, and Stifel’s Chris O’Cull is the latest, reiterating a buy rating and a price target of $ 1,750 on stocks on Monday. He notes that traffic appears to have rebounded in June and July, with the two months seeing visits above the pre-pandemic levels of 2019. This gives him confidence that the company can hit the high end of its sales forecast. like-for-like from 20 to 30%, in particular following recent price increases intended to offset rising employee salaries.
That said, even with Chipotle charging more, he warns that restaurant margins could be squeezed further, requiring further price increases. Nonetheless, he believes that “the company’s margin profile will continue to improve as sales increase,” and he is optimistic about the continued recovery in store sales and strong customer loyalty.
Chipotle stock has risen more than 11% year-to-date and is up almost a third in the past year. Shares hit a new high last week, climbing to over $ 1,626, but fell 1.5% on Monday amid a general market slowdown. Barron named CEO Brian Niccol one of its top CEOs of 2021.
Twenty of the 32 analysts tracked by FactSet have a buy rating or equivalent on Chipotle, with the rest being sidelined. There are no bearish calls on the street. The average analyst price target is $ 1,720.24, although the highest is above $ 2,000.
Chipotle will host a conference call at 4:30 p.m. EST on Tuesday.
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