In the past 30 days, seven analysts have raised their earnings forecast for this restaurant company. The company is expected to grow at an annual rate of 24% over the next five years.
Chipotle Mexican Grill, Inc. (CMG)
From Cabot Growth Investor
Chipotle Mexican Grill, Inc. (CMG) has been a great performer in recent weeks, with a solid, steady advance to new recovery highs (and is actually approaching all-time highs from back in 2015) before falling today due to a downgrade.
We have high hopes that this turnaround situation can go far, but first we have to see what earnings (due out April 24) will bring—analysts see Q1 sales up 9.5% and earnings of $2.93 per share (up 38%), though same-store sales trends are usually just as vital as the topline figures.
Frankly, after such a big run over the past three months, an earnings-induced hiccup wouldn’t shock us, possibly even ushering in a multi-week rest period. But that’s by no means a sure thing, and we’re focusing more on the belief that CMG’s run during the past couple of months is a kickoff to a sustained uptrend. Said another way, we think the stock is a liquid leader of this bull move and should do well over time—if you own some, hang on, and if you don’t, try to get in on weakness.
Michael Cintolo, Cabot Growth Investor, www.cabotwealth.com, 978-745-5532, April 11, 2019