Chipotle Mexican Grill Inc. is also known as Chipotle. It is an American restaurant chain company. The current CEO of the company is Brian R. Niccol. Chipotle was founded in the year 1993. This company has more than 100K employees working for it. Chipotle has its headquarters situated in Newport Beach. The company was founded by Steve Ells.
CMG has a price-to-earnings ratio of 45.76. That is a good factor for the share as this indicates that the investors are willing to pay a higher price for the stock. It also has an EPS of 40.28 USD indicating the earnings of the company on each share. The company has 27.405M shares floating in the market available for trading.
The company does not pay any dividends which means that the company reinvests all of its profit for further growth of the company. Chipotle Mexican Grill has a gross margin ratio of 22.43%. The average trading volume of the share is 259.8K.
The net cash at the company has declined by 3.1% in Q2 2023. It follows up with a decline of 27.1% in accounts receivable in the company. Chipotle reported $3.64B as long-term debt and short-term debt of the company stands at $244.06M.
Chipotle Mexican Grill Stock Performance Analysis
By looking at the charts we can clearly see that the revenue of the share is advancing from the last three years. This indicates that the sales of Chipotle is increasing. This advance in revenue has also followed an advance in profit margin year-on-year.
Price Target for CMG Stock
As per the Tradingview, the analysts are bullish on the CMG share. The CMG share is currently trading below its average price and the expected target price by the experts is $2570. The following price is 37.64% above the CMP.
CMG Stock Technical Analysis
The CMG stock price is declining from the higher levels and has been forming lower highs. The share price is also sustaining at the current support level and making bullish candlesticks. That indicates the buyers are acquiring the stock at lower levels.
EMAs of the CMG stock are trading in a golden cross on the daily timeframe. The share price is currently taking support at the 200-day EMA, forming bullish candlesticks. If the price manages to break above the 50-day EMA, we might get to see trend continuation for higher levels.
The CMG share’s RSI is trading below the 50 level. It is taking support at the oversold level and is taking rejection at the same. It has also crossed above the 14-day SMA. If RSI manages to sustain above the 50-level, we might get to see a continuation in the price of the stock.
Conclusion
Chipotle Mexican Grill has very good finances. The company has strong and reliable fundamentals and growth in sales. The share price is also following a bullish market structure. Despite of decline in the share price, the RSI and the EMA are indicating mild bullishness.
Therefore, if the CMG share price sustains above the $1777.00 level, the share might end up advancing to higher levels. We also can get to see new highs in the share price in upcoming days.
Technical Levels
- Support levels for the CMG share are – $1671.00 and $1777.00
- Resistance levels for the CMG share are – $1971.00 and $2175.00
Disclaimer
The information provided in this article, including the views and opinions expressed by the author or any individuals mentioned, is intended for informational purposes only. It is important to note that the article does not provide financial or investment advice. Investing or trading in cryptocurrency assets carries inherent risks and can result in financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/10/03/cmg-to-announce-its-earnings-what-should-be-your-expectations/