Chipotle (CMG) Q1 Earnings: What To Expect

Mexican fast-food chain Chipotle (NYSE:CMG) will be reporting earnings tomorrow after market hours. Here’s what to look for.

Chipotle met analysts’ revenue expectations last quarter, reporting revenues of $2.85 billion, up 13.1% year on year. It was a slower quarter for the company, with a slight miss of analysts’ EBITDA estimates and same-store sales in line with analysts’ estimates.

Is Chipotle a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Chipotle’s revenue to grow 8.9% year on year to $2.94 billion, slowing from the 14.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.28 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Chipotle has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Chipotle’s peers in the restaurants segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Darden delivered year-on-year revenue growth of 6.2%, missing analysts’ expectations by 1.7%, and Kura Sushi reported revenues up 13.3%, in line with consensus estimates. Darden traded up 6.2% following the results while Kura Sushi was also up 31.8%.

Read our full analysis of Darden’s results here and Kura Sushi’s results here.

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