Chipotle’s Earnings Forecast Revised Downwards

Chipotle stock price (NYSE: CMG) has continued a recent downtrend over the past week, with a 6.5% loss bringing the cumulative 1 month dip to 19.38%. The recent quarter's earnings beat on both EPS (0.34 against 0.32) and revenue ($2.97bn against $2.94bn) has done little to shift momentum.

Analysts are constantly reviewing their position on stocks they cover, and in one of the latest updates to have come out after recent earnings, Wedbush have updated their earnings forecast for Chipotle Mexican Grill. The firm are making changes to their forward looking earnings forecasts, with CMG's third-quarter performance for the fiscal year 2024 along with subsequent quarters in 2025 all seeing movement.

In their latest report, the Wedbush team has reduced their Q3 2024 earnings per share (EPS) estimate for the fast-casual restaurant chain from an initial $0.28 to $0.24. This adjustment reflects a more conservative outlook on the company’s near-term earnings potential.

Looking further ahead, Wedbush also offered projections for Chipotle’s future performance, estimating the EPS for Q3 2025 at $0.30 and for Q4 2025 at $0.29. These forecasts provide a glimpse into the expected growth trajectory of Chipotle's earnings over the coming years.

Investors observe Chipotle's stock movement to gauge its market performance, which has experienced fluctuations over the past year. The company's 12-month trading window revealed a low of $35.37 and a high of $69.26.

In a positive turn for the company, Chipotle reported an EPS of $0.34 for the quarter ending on July 24th, surpassing the consensus estimates among analysts, which had projected an EPS of $0.32 by $0.02. This beat indicates that Chipotle's actual earnings were higher than what analysts had anticipated, signaling a potential uptrend in the company's financial performance.

With its wide-reaching presence, Chipotle Mexican Grill, Inc. operates numerous restaurants across the United States, Canada, France, Germany, and the United Kingdom. The brand is well-known for its menu that includes a variety of Mexican-inspired items such as burritos, burrito bowls, quesadillas, tacos, and salads.

Investors in Chipotle Mexican Grill are likely to keep a close watch on the company's performance, guided by analyses from financial institutions like Wedbush. The accuracy of these predictions plays a crucial role in investment decisions, as stakeholders take into account the shifting financial landscape and the company's potential to adapt and thrive in the competitive restaurant industry.