What You Need To Know Ahead of Chipotle Mexican Grill's Earnings Release

Core Insights - Chipotle Mexican Grill, Inc. is set to announce its third-quarter results on October 29, with analysts expecting an EPS of $0.29, reflecting a 7.4% increase from the previous year [2] - For the full fiscal year 2025, earnings are projected to be $1.20 per share, up 7.1% from $1.12 in 2024, with a further expected surge of 18.3% to $1.42 per share in fiscal 2026 [3] - Despite a strong earnings surprise history, Chipotle's stock has underperformed, dropping 29.3% over the past 52 weeks compared to the Consumer Discretionary Select Sector SPDR Fund's 20% increase and the S&P 500 Index's 17.4% gains [4] Financial Performance - In Q2, Chipotle's revenues increased by 3% year-over-year to $3.1 billion, but this was 1.2% below market expectations [5] - Comparable restaurant sales fell by 4% year-over-year, driven by a 4.9% decline in transactions, although this was partially offset by an increase in average check [6] - The restaurant-level operating margins contracted by 1.5% to 27.4%, and adjusted EPS decreased by 2.9% year-over-year to $0.33 [6] Analyst Sentiment - The consensus rating for Chipotle remains highly optimistic, with a "Strong Buy" rating from 22 out of 32 analysts, alongside three "Moderate Buys" and seven "Holds" [7] - The mean price target of $58.13 indicates a potential upside of 41.8% from current price levels [7]