uploads///Stock Price and Earnings

Chipotle’s 4Q15 Earnings Could Pale Compared to 4Q14


Jan. 27 2016, Updated 11:19 a.m. ET

CMG’s earnings release

Chipotle Mexican Grill (CMG) will release its 4Q15 earnings on February 2, 2016, after the market closes. 2015 was quite a tumultuous year for the company. Chipotle lost 29.2% of its value in 2015. YTD (year-to-date) as of January 25, the stock has fallen another 7.8%.

So far in 2016, several restaurant stocks have fallen due to broader market tensions. Yum! Brands (YUM) has fallen 7.7%, Shake Shack (SHAK) has fallen 12.2%, and the comparable benchmark Consumer Discretionary Select Sector SPDR ETF (XLY) has fallen 7.3% YTD. However, McDonald’s (MCD) has risen slightly by 0.9% as a result of its impressive earnings released on January 25.

Article continues below advertisement

4Q15 earnings

The above chart shows how Chipotle’s shares have moved after its earnings results. Expectations for 4Q15 are already low, given that it’s up against the solid performance of the corresponding 4Q14. However, in the midst of the recent food safety issues connected to the E. coli incidents the company experienced in the past three months, it’s not a surprise that Chipotle will report weak 4Q15 results.

Series overview

In this series, we’ll take a look at the expectations around Chipotle’s upcoming earnings. These include expectations of revenue, margins, and earnings per share. We’ll also look at expectations regarding one of the most important performance metrics for restaurants, especially Chipotle: same-store sales growth. We’ll also discuss the company’s valuation multiple and analysts’ recommendations and revised price targets.


More From Market Realist

  • Honeywell sign
    Earnings Report
    CNBC Pro Stocks to Buy Before Q1 Earnings
  • Men walking by Morgan Stanley headquarters
    Morgan Stanley’s (MS) Stock Forecast Before Q1 Earnings
  • Carnival cruise ship sailing
    Carnival's (CCL) Stock Forecast Before Q1 Business Update
  • GameStop store
    GME's Earnings Are Coming: Will It Be Mayday for Shorts or WallStreetBets?
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.