Chipotle: Zacks’ Bear of the Day Play

Chipotle Mexican Grill (CMGFree Report) recently missed the Zacks Consensus Estimate on top and on bottom. It is now a Zacks Rank #5 (Strong Sell) and is the Bear of the Day.

Description

Chipotle Mexican Grill operates Chipotle Mexican Grill restaurants. The Company’s Chipotle Mexican Grill restaurants serve a menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads. The Company operates approximately 1,970 Chipotle restaurants throughout the United States, over 10 in Canada and several others around the world.

Recent Earnings

CMG missed the Zacks Consensus Estimate of $0.98 by eleven cents. Revenue came in at $998M while the Zacks Consensus Estimate was looking for $1048M.

Estimates

The Zacks Consensus Estimate has been falling over the last few months. The FY16 estimate stood at $16.69 in December of last year and then fell to $5.32 in April. The estimate currently states at $3.85.

Next year has also seen a move lower in estimates with the 2017 Zacks Consensus Estimate moving from $21.41 to $10.03 over the same time period.

Chart

Zacks has developed a chart that helps investors see how earnings estimates have impacted the price of the stock over the last several years. We call this chart the price and consensus chart, and each color coded lines represents analyst estimates over a designated year. As estimates increase, the stock tends to follow. The Zacks Rank is impacted by earnings estimate increases, beats and incorporates the idea of analyst agreement and magnitude. As a Zacks Rank #5 (Strong Sell) we see that estimates are moving higher.

CHIPOTLE MEXICN Price and Consensus

CHIPOTLE MEXICN Price and Consensus | CHIPOTLE MEXICN Quote

More Stocks to Sell. Now.

Beyond our Bear Stock of the Day, today’s list of 220 Zacks Rank #5 Strong Sells demand even more urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. Many appear to be sound investments but, since 1988, such stocks have actually performed more than 11X worse than the S&P 500.

See today’s Zacks “Strong Sells” absolutely free >>.

Follow Brian Bolan on twitter at @BBolan1

Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »

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