Chipotle (CMG, $1,755.30) beats Q2 earnings expectations
Shares of Chipotle Mexican Grill reported second quarter earnings that exceeded analysts’ expectations.
The fast casual restaurant chain's net income came in at $6.60 a share, compared to the $6.50 per share predicted by analysts surveyed by FactSet. The earnings were also higher than the year-ago quarter’s 29 cents. Adjusted earnings for the quarter were $7.46 a share, also topping analysts’ estimate of $6.53; the figure is also above the year-ago quarter’s 40 cents.
Revenue rose +39% year-over-year to $1.89 billion in the quarter, compared to analysts’ estimate of $1.88 billion.
Chipotle has projected comparable restaurant sales growth in the low- to mid-double digits for the third quarter.
Chipotle Chief Executive Brian Niccol indicated that the company is optimistic on achieving its goal of $3 million average unit volumes with “industry leading returns” on invested capital that are expected to improve as it continues to add Chipotlane drive-through lanes.
CMG in upward trend: 10-day moving average crossed above 50-day moving average on May 06, 2025
The 10-day moving average for CMG crossed bullishly above the 50-day moving average on May 06, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 11 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for CMG just turned positive on April 23, 2025. Looking at past instances where CMG's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CMG advanced for three days, in of 343 cases, the price rose further within the following month. The odds of a continued upward trend are .
CMG may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 304 cases where CMG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 67 cases where CMG's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on May 09, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on CMG as a result. In of 78 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
CMG moved below its 50-day moving average on May 09, 2025 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CMG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. CMG’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: CMG's P/B Ratio (19.194) is slightly higher than the industry average of (5.951). P/E Ratio (44.000) is within average values for comparable stocks, (41.983). Projected Growth (PEG Ratio) (2.141) is also within normal values, averaging (1.757). Dividend Yield (0.000) settles around the average of (0.050) among similar stocks. P/S Ratio (5.935) is also within normal values, averaging (8.489).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
an operator of fast-casual, fresh Mexican food restaurants
Industry Restaurants