Stock With Integrity? A Look at CMG Earnings 2.5.2013

Analysts estimate that Chipotle will report earnings of $1.97 a share and revenue of $698.87 million. That estimate would show a $0.16 increase year-over-year in Chipotles earnings per share, which was reported at $1.81 in the previous year’s fourth quarter.Chipotle has reported earnings per share that have beat analyst’s estimates five out of the last eight quarters. Estimates are down from Chipotles preliminary estimates released January 15, which predicted earnings between $1.92-$1.97 and revenue of $699.2 million. In the previous quarter CMG missed analysts’ forecasts of $2.30 per share, only reporting earnings of $2.27. CMG is estimated to have grown sales by 17.10% during 2012. During the fourth quarter Chipotle is expected to have grown by 8.30% compared to the S&P 500, which is expected to have grown 9.50%. Chipotle has been developing new strategies to attract more customers, announcing in January that it was testing vegetarian menu items known as “Sofritas”. Chipotle has also been testing a new catering venture, which Chipotle said will be available in all the markets it serves. The company is expected to have grown 28.60% this year compared to the estimated industry growth of 36.00%. Shares of CMG are currently trading at $310.19, which is up around 22.86% from the last earnings announcement. Chipotle’s Q4 report will likely fall in line with analysts’ estimates, however that may still come as a disappointment to investors if there is no significant growth realized.

 

Author: Tyler Sciortino

Contact for questions or inquiries at tsciortino312@aol.com