Chipotle Mexican Grill Earnings: Here’s Why Investors are Buying Shares Now

Chipotle Mexican Grill, Inc. (NYSE:CMG) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 5.10%.

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Chipotle Mexican Grill, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 24.37% to $2.45 in the quarter versus EPS of $1.97 in the year-earlier quarter.

Revenue: Rose 13.46% to $726.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Chipotle Mexican Grill, Inc. reported adjusted EPS income of $2.45 per share. By that measure, the company beat the mean analyst estimate of $2.14. It beat the average revenue estimate of $724.77 million.

Quoting Management: “We are committed to sourcing the finest ingredients we can, and to skillfully preparing and cooking them with great care, because we know it results in exceptional tasting food that our customers appreciate. We believe the more people care about their food, and discover where it comes from, the more likely they are to become loyal customers of Chipotle,” said Steve Ells, Founder, Chairman and co-CEO of Chipotle.

Key Stats (on next page)…

Revenue increased 3.95% from $699.16 million in the previous quarter. EPS increased 25.64% from $1.95 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $2.82 to a profit $2.76. For the current year, the average estimate has moved down from a profit of $10.28 to a profit of $10.26 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)