Chipotle Mexican Grill (CMG) Stock: Taking A Dive On Earnings

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Chipotle Mexican Grill, Inc. (NYSE: CMG) is having an overwhelmingly rough start to the trading session this morning after the company released its earnings for the third quarter. Unfortunately, the company simply couldn’t even meet the low expectations that Wall Street set for it. As we can expect, this caused concerns among investors, leading to drastic declines in the value of the stock. Of course, our partners at Trade Ideas were the first to alert us to the declines. At the moment (9:14), CMG is trading at $280.98 per share after a loss of 13.36% thus far today.





CMG Reports Earnings, Missing Expectations

As mentioned above, Chipotle Mexican Grill is having an overwhelmingly rough time in the market today after the company reported its earnings for the third quarter. Unfortunately, the results were overwhelmingly disappointing, even though Wall Street already had pretty low expectations for this quarter. Here’s what we saw from the report:




  • Earnings – In terms of earnings per share, CMG missed the mark in a big way. During the quarter, analysts expected that the company would generate earnings in the amount of $1.63 per share. However, the company missed that mark in a big way, reporting earnings of only $1.33 per share
  • Revenue – Revenue also proved to be a big source of concern. During the quarter, analysts expected that the company would generate revenue in the amount of $1.14 billion. However, the company actually reported revenue for the quarter in the amount of $1.13 billion.
  • Same-store Sales – Finally, CMG also proved to disappoint when it came to same-store sales. During the quarter, it was expected that the company would see same-store sales in the amount of 1.2%. However, the company actually reported growth in same-store sales in the amount of just 1%

The company gave a few reasons for the declines that we’ve seen in profits. First and foremost, Chipotle Mexican Grill said that Hurricanes Irma and Harvey were a couple big reasons for the lower-than-expected revenue. On top of that, profits lost a big chunk thanks to the costs associated with the April malware attack. Not to mention, increasing prices of avocado and beef have been cutting into the company’s bottom line.

Nonetheless, regardless of the reasons provided, CMG investors are unhappy. At the end of the day, investors expected that the company would meet the already tapered expectations. With an inability to do so, the question of whether or not the company has what it takes to produce meaningful growth is starting to be asked more and more!

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on CMG. In particular, we’re interested in seeing what the company does in order to bounce back from the depressing quarterly results they just published. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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