More Room For Gains In Chipotle’s Stock?

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[Updated 11/24/2021] Chipotle Update

Chipotle Mexican Grill Stock (NYSE:CMG), up 30% since the end of 2020. This benefit comes despite Chipotle announcing a price hike in the middle of the year to cover the cost of raising their employees’ wages and higher material costs. The company saw comparable restaurant sales increase 15.1% year over year in the recently announced Q3 2021, while total revenue grew 21.9% to $2.0 billion. Digital sales continued to grow at 8.6% and accounted for 42.8% of sales. Operating margin also improved to 12.3% for the quarter.

Overall, we expect Chipotle’s Revenue Net income rose 24% to $7.4 billion for 2021, to $681 million. This will increase the EPS for 2021 to $24.64. Revenue for fiscal year 2022 is expected to be $9.2 billion. In addition, its net income is expected to rise to $854 million, boosting its EPS figure to $31.46 in 2021, coupled with a P/E multiplier of 63x going forward. Chipotle’s Evaluation Around $1981, which is 15% higher than the current market price.

[Updated 06/18/2021] Will Chipotle’s Stock Rally Stop Price Rise?

Chipotle Mexican Grill, is an American chain of fast casual restaurants in the United States, United Kingdom, Canada, Germany and France, specializing in Mexican cuisine. The CMG has risen 65% since the end of 2019 — rising from about $837 to $1383. Chipotle recently increased its prices to cover the cost of raising the wages of its employees. The company said in May that it would increase the hourly wages of its restaurant workers to an average of $15 an hour by the end of June. The increase was also a result of rising material costs in recent months. We believe that increasing or increasing the menu prices will not reduce its price.

we expect Chipotle’s Revenue That would increase by 24% to $7.4 billion for 2021. In addition, its net income is expected to rise to $566 million, raising its EPS figure to $20.46 in 2021, coupled with a P/E multiplier of 83.6x going forward. Chipotle’s Evaluation Around $1710, which is 29% higher than the current market price.

[Updated 02/16/2021] Chipotle Update

After up 82 per cent since the end of 2019, Chipotle Mexican Grill Moderate bullishness in the short term. CMG stock has risen from $837 at the end of 2019 to now nearly $1528, compared to a 22% increase since the end of 2019 compared to the S&P 500. The company has seen growth in revenue and earnings in recent years.

During the COVID-19 crisis, CMG saw its revenue grow by 7% in 2020 as the lockdown forced the company to close dine-ins, but this was offset by a massive increase in digital sales. In fiscal 2020, CMG reported revenue estimates of $6 billion by 7% annually and earnings per share of $12.74, compared to $12.62 in the same period last year. In addition, the company reported $664 million in cash flow from operating activities for the first nine months.

We expect Chipotle’s revenue to grow 21% to $7.2 billion for 2021. In addition, its net income is expected to rise to $543 million, leading its EPS figure to rise to $19.64 in 2021, combined with a P/E multiplier of nearly 83x. Chipotle is valued at around $1,643 which is 7.5% higher than the current market cap.

[Updated 03/24/2020] Chipotle’s Losses Have Tracked the S&P 500 So Far, But Can It Outperform Post Coronavirus?

Chipotle Mexican Grill The stock fell nearly 8% between March 8, 2020 and March 24, 2020 (versus the S&P 500 down 18%), and is down 23% since January 31 after the WHO declared a global health emergency in light of the coronavirus . The spread (versus since the S&P 500’s decline of about 27%).

Looking back at the 2008 financial crisis, we see that CMG stock fell from around $123 in October 2007 (the pre-crisis peak) to below $55 in March 2009 (as was the market’s bottom). This means that CMG stock lost more than 55% of its value from its projected pre-crisis peak. This marked a slightly higher decline than the broader S&P, which fell as much as 51%.

Notably, the CMG corrected strongly after the 2008 crisis to a level of around $88 in early 2010 – an increase of more than 61% between March 2009 and January 2010. In comparison, the S&P bounced back about 48% over the same period. Considering how closely the company’s stock has tracked the S&P 500 even this time around, it will likely outperform the broader market index in the coming months.

On Monday, March 9, the stock market entered a phase of extreme volatility, with two significant selloffs on Monday and Thursday separated by days of partial recovery. Overall, there have been two distinct trends driving the recent selloff. First, the rising number of coronavirus cases outside China is causing growing concerns of a global economic slowdown. Second, crude oil prices fell by more than 20% after Saudi Arabia increased production.

The CMG stock has suffered due to the lockdown in states and countries. People are not meeting friends and colleagues or going out for lunch or dinner with family. Many restaurants and eateries have temporarily closed their shutters, and those that are still open operate only in take-out mode. In addition to low demand, supply chains around the world have also been hit – leading to lower sales. We believe Chipotle’s Q1 and Q2 results will confirm this reality with a decline in their revenue — more than 95% of which comes from North America.

While Chipotle stock could rise higher in the near term, there are many that look alike. Better bet than CMG stock, Too, Chipotle Peers Comparison Summarizes how the company performs against peers on key metrics.

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