Tuesday, February 3, 2015

What to Expect When Chipotle (CMG) Reports Earnings Today

NEW YORK (TheStreet) -- Shares of Chipotle Mexican Grill are climbing, higher by 0.48% to $715.97 in afternoon trading Tuesday, ahead of the burrito chain's fourth quarter and full-year earnings release after the market closes today. For the fourth quarter, analysts expect earnings of $3.79 per share, higher than the $2.53 per share it reported in the same quarter of last year. Analysts' estimates call for revenue of $1.07 billion, also higher compared to the $844.15 million Chipotle posted a year ago. For the full year, the Mexican food chain is projected to post a profit of $14.07 per share, up from the $10.47 per share from a year prior. Revenue is expected to increase by 28% year over year to $4.11 billion, from the year ago sales of $3.21 billion. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Denver, CO-based Chipotle operates Chipotle Mexican Grill restaurants, serving a menu of burritos, tacos, burrito bowls and salads through its 1,410 restaurant locations. Separately, TheStreet Ratings team rates CHIPOTLE MEXICAN GRILL INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation: "We rate CHIPOTLE MEXICAN GRILL INC (CMG) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth greatly exceeded the industry average of 10.8%. Since the same quarter one year prior, revenues rose by 31.1%. Growth in the company's revenue appears to have helped boost the earnings per share. CHIPOTLE MEXICAN GRILL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CHIPOTLE MEXICAN GRILL INC increased its bottom line by earning $10.46 versus $8.75 in the prior year. This year, the market expects an improvement in earnings ($14.10 versus $10.46). The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 56.9% when compared to the same quarter one year prior, rising from $83.38 million to $130.80 million. Net operating cash flow has significantly increased by 56.51% to $189.33 million when compared to the same quarter last year. In addition, CHIPOTLE MEXICAN GRILL INC has also vastly surpassed the industry average cash flow growth rate of -31.28%. Powered by its strong earnings growth of 56.01% and other important driving factors, this stock has surged by 47.47% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels. You can view the full analysis from the report here: CMG Ratings Report CMG data by YCharts STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.


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