Chipotle Mexican Grill (CMG) ended the recent trading session at $53.60, demonstrating a +0.81% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 1.12% for the day. Elsewhere, the Dow saw an upswing of 1.14%, while the tech-heavy Nasdaq appreciated by 1.46%.

The Mexican food chain's stock has dropped by 9.91% in the past month, falling short of the Retail-Wholesale sector's loss of 6.55% and the S&P 500's loss of 4.13%.

Market participants will be closely following the financial results of Chipotle Mexican Grill in its upcoming release. In that report, analysts expect Chipotle Mexican Grill to post earnings of $0.29 per share. This would mark year-over-year growth of 7.41%. In the meantime, our current consensus estimate forecasts the revenue to be $2.97 billion, indicating a 9.91% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.29 per share and revenue of $12.62 billion, indicating changes of +15.18% and +11.52%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Chipotle Mexican Grill. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.09% decrease. Chipotle Mexican Grill is currently a Zacks Rank #3 (Hold).

In terms of valuation, Chipotle Mexican Grill is currently trading at a Forward P/E ratio of 41.33. This represents a premium compared to its industry's average Forward P/E of 23.58.

One should further note that CMG currently holds a PEG ratio of 2.05. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 2.4.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 70, positioning it in the top 28% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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