Chipotle Mexican Grill, Inc., together with its subsidiaries, owns and operates Chipotle Mexican Grill restaurants. It sells food and beverages through offering burritos, burrito bowls, quesadillas, tacos, and salads. The company also provides delivery and related services its app and website. It has operations in the United States, Canada, France, Germany, and the United Kingdom. Chipotle Mexican Grill, Inc. was founded in 1993 and is headquartered in Newport Beach, California.

Chipotle looks like a high-quality business with very strong profitability, but the market is already pricing in a noticeably high level of expectations. P/E of 29.31, P/S of 3.38, P/B of 17.11, and P/FCF of 31.52 are significantly above the industry median, which limits re-rating potential and makes the stock sensitive to any slowdown in growth. At the same time, ROE of 53.28%, ROA of 15.80%, and return on tangible equity of 53.72% are at a very high level and confirm capital efficiency. Operating margin of 14.65% and net margin of 11.43% are also strong, although the yearly trend shows a gradual decline from higher levels, which slightly worsens the picture. Gross margin of 24.65% is below the industry median and is also declining, signaling pressure on cost of goods sold or pricing flexibility. Revenue, profit, and EBITDA remain large and profitable, but the trend does not look like it is accelerating: revenue is around $3.09 billion, net income is $404 million, EBITDA is $624 million, with no signs of a sharp acceleration. The balance sheet without long-term debt is a major positive, reducing financial risk and supporting business resilience. However, liquidity has weakened: the quick ratio of 0.68 and current ratio of 0.92 are below comfortable levels, and cash on hand has declined noticeably compared with previous periods. Shareholders’ equity is also declining, which partly explains the very high P/B and calls for caution in valuation. There are no dividends, so shareholders only earn through price appreciation, which increases dependence on market re-rating. Overall, the company’s fundamentals are strong, but they are already reflected in the high valuation, and the deterioration in margins and liquidity does not justify an aggressive increase in the target price. For an investor, this is more of a story of a high-quality but expensive business with limited upside and heightened sensitivity to any disappointment in growth rates.

Chipotle Mexican Grill, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, значительно вырос. Рынок на стороне быков.

Weak index, significantly up. The market is on the bulls' side.

Средний индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Medium index, slightly up. Outflow of funds from longs at a high level.

Strong profitability and zero debt support CMG, but very expensive multiples, weak liquidity, and declining margins limit upside.

The S&P 500 Index ($SPX) (SPY) is down by -0.07% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.42%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.69%. December E-mini S&P futures (ESZ26) are down -0.05%, and December E-mini Nasdaq futures (NQZ26) are down -0.65%.
Stock indexes are mixed today, with the Dow Jones Industrials posting a 2.5-week high. The broader market is under pressure from higher crude oil prices, with WTI crude up more than +2% today on concerns about escalating tensions in the Middle East after repeated Houthi attacks on Saudi Arabia from neighboring Yemen. Weakness in chipmakers and AI-infrastructure stocks is also weighing on the overall market today.
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Stocks have support from the prospect of solid quarterly earnings results that will begin this week. Goldman Sachs today raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.” Also, strength in software stocks and energy producers is supportive of the overall market.
Market activity may be below normal, as the cash Treasury market is closed today for the Columbus Day bank holiday.
According to data compiled by Bloomberg Intelligence, Q3 S&P 500 profits are expected to climb by +25% from a year earlier, up from a July estimate of 22%. Q3 earnings season begins this week when US money center banks report.
Nov WTI crude oil prices (CLX26) are up more than +2% today after Iran-backed Houthi rebels in Yemen launched drone and missile attacks against Saudi Arabia over the weekend, raising the risk of escalation that could draw the US into the conflict. Also, there's been a recent escalation of drone and missile attacks against vessels traversing the Strait of Hormuz, limiting energy exports from the region. Limiting gains in crude are the prospects of Russia releasing diesel supplies into theglobal marketafter the US Treasury issued a waiver for previously sanctioned Russian fuel. Last Friday, Russia said it will partially lift its ban on diesel exports, allowing 500,000 MT of diesel fuel to reach international markets following an agreement between Russian President Putin and US President Trump.
Markets are discounting a 19% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are mixed today. The Euro Stoxx 50 is up +0.44%. China's Shanghai Composite closed down -0.43%. Japan's Nikkei-225 Stock Average did not trade, as Japanese markets were closed today for the Health Sports Day holiday.
Interest Rates
December 10-year T-notes (ZNZ6) are down by -2.5 ticks today. The 10-year T-note yield is not trading today, as the cash Treasury market is closed for the Columbus Day bank holiday. Dec T-notes are under pressure today as higher crude oil prices raise inflation expectations.
European government bond yields are mixed today. The 10-year German bund yield is down -0.5 bp to 3.476%. The 10-year UK gilt yield is up +0.1 bp to 5.444%.
ECB Governing Council member Yannis Stournaras said the ECB may raise interest rates again to curb inflation but without rushing any action, suggesting an ECB rate hike this month is less likely than one in December.
Markets are discounting a 13% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks are sliding today, weighing on the overall market. Lumentum Holdings (LITE) is down more than -7% to lead losers in the S&P 50 and Nasdaq 100, and Sandisk (SNDK) is down more than -6%. Also, Micron Technology (MU) and Marvell Technology (MRVL) are down more than -4%, and Advanced Micro Devices (AMD), ARM Holdings (ARM), Intel (INTC), and Seagate Technology Holdings Plc (STX) are down more than 3-%. In addition, Lam Research (LRCX), KLA Corp (KLAC), Microchip Technology (MCHP), and Western Digital (WDC) are down more than -2%, and Applied Materials (AMAT), Broadcom (AVGO), and Qualcomm (QCOM) are down more than -1%.
Software stocks are climbing today, led by a +2% jump in Salesforce (CRM) to lead gainers in the Dow Jones Industrials after Bank of America Global Research double-upgraded the stock to buy from underperform with a price target of $285. Also, Workday (WDAY) is up more than +2%, and ServiceNow (NOW), Intuit (INTU), and Microsoft (MSFT) are up more than +1%.
Energy producers and service providers are moving higher today, with WTI crude oil up more than +2%. Diamondback Energy (FANG) is up more than +2%, and APA Corp (APA), Chevron (CVX), ConocoPhillips (COP), Devon Energy (DVN), ExxonMobil Holdings (XOM), and Occidental Petroleum (OXY) are up more than +1%.
IonQ (IONQ) is down more than -8% after agreeing to buy Elisity Inc. for as much as $1.3 billion in an all-stock transaction.
Chipotle Mexican Grill (CMG) is down more than -4% after Starbucks said it has no plans to acquire the company.
Enact Holdings (ACT) is down more than -1% after JPMorgan Chase downgraded the stock to underweight from neutral with a price target of $44.
Adobe (ADBE) is down more than -1% after Wells Fargo Securities double-downgraded the stock to underweight from overweight with a price target of $225.
First Tracks Biotherapeutics (TRAX) is up more than +6% after reporting topline results from an early-stage trial of its experimental therapy for celiac disease.
AST SpaceMobile (ASTS) is up more than +4% after Deutsche Bank upgraded the stock to buy from hold with a price target of $93.
Biogen (BIIB) is up more than +3% after JPMorgan Chase upgraded the stock to overweight from neutral, with a price target of $300.
Earnings Reports (10/12/2026)
Liberty Live Holdings Inc (LLYVA) and SR Bancorp Inc (SRBK).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Pressured by Rising Crude Prices and Chipmaker Weakness

Key Points
Starbucks' CEO once engineered a turnaround at Chipotle.
He's also attempting to turn around poor sales at Starbucks.
Shares of Chipotle Mexican Grill (NYSE: CMG) soared this past Thursday on news that Starbucks (NASDAQ: SBUX) has been considering an acquisition of the fast-casual burrito chain.
On Thursday, The Financial Times reported that Starbucks has been working with advisors in recent months on a takeover proposal for Chipotle. Chipotle shares were up almost 7% in late morning trading on Thursday, while Starbucks' share price dropped more than 3%.
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It's far from certain that Starbucks will actually attempt the takeover. It would be a massive deal, as Chipotle's market capitalization is north of $41 billion. And the acquisition could also face antitrust obstacles, though the Trump administration has so far not applied those laws strictly.
FT reports that an acquisition of Chipotle would be the biggest-ever merger in the restaurant sector, dwarfing Burger King's 2014 acquisition of Canadian coffee chain Tim Hortons, at around $11.4 billion.
Starbucks' CEO has engineered corporate turnarounds before
Interestingly, Starbucks CEO Brian Niccol is a former Chipotle CEO. He led the restaurant for six years. Since he left, the company's share price has fallen by nearly half. Niccol also worked for Yum! Brands, which owns KFC and Taco Bell.
Niccol engineered a well-respected turnaround at Chipotle after becoming CEO in 2018. While he was there, sales soared, and the share price climbed more than eightfold, moving from around $6 to $56. He has been attempting the same kind of transformation at Starbucks, which recorded six consecutive quarters of falling sales from early 2024 to late 2025.
Customers had complained about their experience at the coffee shops, including long lines, too few employees, and inconsistent product offerings. Niccol's "Back to Starbucks" turnaround plan has attempted to make service more consistent and faster, and make the coffeehouses' environments warmer.
Since Niccol left Chipotle in late August 2024 to take the helm at Starbucks, Chipotle's share price has fallen by about 40%. Starbucks shares are down about 5% since that date.
The latest news that Niccol is looking at combining the two chains suggests he sees more value in Chipotle than investors do; that, with the share price significantly below where it was when he left, he believes the price of an acquisition is favorable right now; and that he thinks he can lead the combined company's stock price higher, possibly benefiting from synergies that come from mergers.
With Chipotle shares up sharply on the news, it seems investors believe Niccol could improve that business once again, though the undertaking might divert his attention from Starbucks' operations.
Should you buy stock in Chipotle Mexican Grill right now?
Before you buy stock in Chipotle Mexican Grill, consider this:
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Matthew Benjamin has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill and Starbucks. The Motley Fool recommends Yum! Brands and recommends the following options: short December 2026 $38 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
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Chipotle Shares Are Soaring on News That Starbucks May Acquire It

Chipotle Mexican Grill (NYSE:CMG), a fast-casual Mexican grill, closed at $32.65, up 6.10%. The stock moved after reports said Starbucks had explored a takeover, and investors are watching the Oct. 28 earnings report and Boorito-season sales trends. Trading volume reached 63.7M shares, coming in about 271% above its three-month average of 17.2M shares. Chipotle Mexican Grill IPO'd in 2006 and has grown 3,610% since going public.
How the markets moved today
The S&P 500 (SNPINDEX:^GSPC) closed at 7,766, down 0.46%, while the Nasdaq Composite (NASDAQINDEX:^IXIC) finished at 27,193, down 1.25%. In restaurants: limited-service, fast-casual Mexican food, McDonald's (NYSE:MCD) closed at $236.88, up 2.60%, and Restaurant Brands International (NYSE:QSR) closed at $70.65, up 1.76%, as takeover speculation kept Chipotle and related restaurant names in focus.
What this means for investors
Brian Niccol might be creating his own homecoming to Chipotle after a report surfaced that Starbucks (now helmed by Niccol) was interested in acquiring the burrito chain he once led. CMG shares popped 6% on the revelation today, after the market was largely unmoved on rumors of the deal earlier in the week.
While the idea of leveraging Niccol's experience at both restaurants makes sense, I'm not sure the deal's size or pricing works as well. Starbucks has a $107 billion market cap, but it would likely have to pay over $45 billion for the Mexican food chain, which would be tough to stomach, balance-sheet-wise.
On a personal level, one of my daughter's core positions is Chipotle, as it is one of her favorite restaurants, but I don't have a major reaction to today's news either way. I'm happy to keep holding shares of the once-high-flying growth stock for my daughter, but I am not interested in front-running a potential M&A deal.
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Before you buy stock in Chipotle Mexican Grill, consider this:
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Josh Kohn-Lindquist has positions in Chipotle Mexican Grill. The Motley Fool has positions in and recommends Chipotle Mexican Grill. The Motley Fool recommends Restaurant Brands International and recommends the following options: long January 2028 $320 calls on McDonald's, short December 2026 $38 calls on Chipotle Mexican Grill, and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.

Stock Market Today, Oct. 8: Chipotle Surges 6% on New Starbucks Takeover Report

McDonald’s Corporation MCD is looking beyond its traditional burger-and-fries business to beverages as a potentially meaningful source of incremental growth. The company’s new beverage platform, launched in May 2026, has generated encouraging early results across the United States, Canada and Germany, with Australia joining the rollout in mid-July. Management said performance has generally met or exceeded initial expectations across these markets.
The opportunity is particularly compelling because beverages can create incremental visits during underutilized dayparts. More than half of traffic associated with the new platform is occurring after lunch, when McDonald’s restaurants typically have lower volumes and greater capacity. Moreover, strong food attachment has lifted average checks, which management said are roughly 50% above the company’s full-day average for these beverage transactions.
Germany offers an early indication of the broader opportunity. The market introduced the full lineup of cold coffee, crafted sodas, refreshers and energy beverages, generating meaningful incremental contributions to comparable guest counts, sales and restaurant-level cash flow.
The platform also fits squarely within the McDonald’s > NEXT strategy. Management said U.S. beverage sales are ahead of plan, while higher guest checks, new daypart occasions and strong food attachment are reinforcing momentum. More importantly, McDonald’s views beverages as a baseline growth platform capable of delivering multiple years of opportunity and plans to extend it into additional markets.
With more than 45,000 restaurants across over 100 countries, McDonald’s has the scale to broaden successful beverage concepts rapidly. If early traffic, check and cash-flow gains persist as the rollout expands, beverages could become a meaningful new global growth wave for the company.
How Rivals SBUX and CMG Are Expanding Beverage Opportunities
McDonald’s is not alone in targeting beverages as a way to create new occasions and drive incremental traffic. Starbucks Corporation SBUX and Chipotle Mexican Grill, Inc. CMG are also leaning on beverage innovation to support growth.
Starbucks is expanding its Refreshers platform, which delivered double-digit U.S. revenue growth in the third quarter of fiscal 2026. Customizable energy offerings, new flavors and planned sparkling beverages are helping the company target both morning and afternoon occasions, with management viewing Refreshers as an important tool for expanding the afternoon daypart.
Chipotle is accelerating menu innovation across proteins, sides, desserts and beverages, with management identifying beverages as an area with significant untapped potential. The company is developing new beverage concepts as it looks to broaden customer occasions and give guests more reasons to visit. Management expects some of its broader menu innovations to reach restaurants in the second half of 2026 and into 2027.
MCD’s Price Performance, Valuation & Estimates
McDonald’s shares have lost 13.1% in the past three months, outperforming the Zacks Retail - Restaurants industry, but underperforming the broader Retail and Wholesale sector and the S&P 500 index.
MCD Three-Month Price Performance
In terms of its forward 12-month price-to-earnings ratio, MCD is trading at 17.27, down from the industry’s 19.94.
MCD P/E (F12M)
MCD’s earnings estimates for 2026 and 2027 have trended downward in the past seven days. The revised estimates for 2026 and 2027 imply year-over-year growth of 5.3% and 7.2%, respectively.
MCD Estimate Trend
MCD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can McDonald's Beverage Expansion Become Its Next Global Growth Wave?

(RTTNews) - U.S.-based fast-casual restaurant chain Chipotle Mexican Grill (CMG) Monday said it will bring back its discontinued margarita for a limited time as part of a five-city pop-up tour ahead of its annual Halloween celebration, Boorito.
The $6 Chipotle Margarita, made with tequila, triple sec, citrus juice, agave nectar and a fresh lime wedge, will be available to guests aged 21 and older.
The "Summon the Spirits Tour" will visit Denver, New York, Dallas, Los Angeles and New Orleans on Fridays and Saturdays throughout October, with the final stop scheduled for October 30 and 31. The $6 margarita will be available at one Chipotle restaurant every Friday and Saturday throughout the month.
The pop-ups will feature dedicated margarita bars, Halloween-themed décor, interactive experiences and opportunities to win Chipotle prizes.
On the NYSE, Chipotle shares were nearly flat at $31.35 Monday morning.

Chipotle's $6 Margarita Returns On 5-City Halloween Tour

In the latest trading session, Chipotle Mexican Grill (CMG) closed at $32.69, marking a -1.37% move from the previous day. Meanwhile, the Dow experienced a drop of 0.36%, and the technology-dominated Nasdaq saw an increase of 0.45%.
Shares of the Mexican food chain have depreciated by 12.84% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 3.54%, and the S&P 500's gain of 1.27%.
The investment community will be paying close attention to the earnings performance of Chipotle Mexican Grill in its upcoming release. The company is slated to reveal its earnings on October 28, 2026. In that report, analysts expect Chipotle Mexican Grill to post earnings of $0.29 per share. This would mark no growth from the year-ago period. Alongside, our most recent consensus estimate is anticipating revenue of $3.28 billion, indicating a 9.32% upward movement from the same quarter last year.
CMG's full-year Zacks Consensus Estimates are calling for earnings of $1.15 per share and revenue of $13 billion. These results would represent year-over-year changes of -1.71% and +8.99%, respectively.
Any recent changes to analyst estimates for Chipotle Mexican Grill should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.08% increase. Chipotle Mexican Grill is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Chipotle Mexican Grill's current valuation metrics, including its Forward P/E ratio of 28.92. This represents a premium compared to its industry average Forward P/E of 21.04.
We can additionally observe that CMG currently boasts a PEG ratio of 2.03. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Restaurants industry currently had an average PEG ratio of 1.7 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 175, which puts it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Chipotle Mexican Grill (CMG) Stock Moves -1.37%: What You Should Know

Investors interested in stocks from the Retail - Restaurants sector have probably already heard of Yum China Holdings (YUMC) and Chipotle Mexican Grill (CMG). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Yum China Holdings is sporting a Zacks Rank of #2 (Buy), while Chipotle Mexican Grill has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that YUMC likely has seen a stronger improvement to its earnings outlook than CMG has recently. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
YUMC currently has a forward P/E ratio of 14.05, while CMG has a forward P/E of 28.92. We also note that YUMC has a PEG ratio of 1.09. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CMG currently has a PEG ratio of 2.03.
Another notable valuation metric for YUMC is its P/B ratio of 2.39. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, CMG has a P/B of 19.06.
Based on these metrics and many more, YUMC holds a Value grade of A, while CMG has a Value grade of D.
YUMC stands above CMG thanks to its solid earnings outlook, and based on these valuation figures, we also feel that YUMC is the superior value option right now.
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This article originally published on Zacks Investment Research (zacks.com).

YUMC or CMG: Which Is the Better Value Stock Right Now?

Brinker International, Inc. EAT is entering its next phase of Chili’s growth from a stronger unit-economics base. Average annual unit volumes (AUVs) climbed from just over $4.5 million at the end of fiscal 2025 to about $5 million in fiscal 2026, supported by a second consecutive year of traffic gains and five straight years of same-store sales growth. Management views this combination of higher volumes and sustained traffic as evidence that its focus on food, service, value and restaurant operations is gaining traction.
Importantly, the $5 million AUV level may not represent the ceiling. Chili’s comparable sales increased 9.2% in fiscal 2026, including a 3.6% traffic contribution. In the fiscal fourth quarter, comps advanced 5.6%, with traffic remaining positive at 1.5% despite comparison with a 16.3% traffic increase in the prior-year period. Chili’s company sales also reached about $1.41 billion in the fiscal fourth quarter, up from roughly $1.33 billion a year earlier.
Brinker is looking to build on these volumes through continued reinvestment rather than relying solely on pricing. Its strategy centers on strengthening Chili’s everyday value proposition, improving food and service, and using menu innovation to generate incremental visits. The Big Smasher, Big QP and Big Crispy Chicken Sandwich have supported this approach, with management noting that sales and traffic accelerated further in July following the Big Crispy rollout.
Higher AUVs also provide more flexibility to reinvest. Brinker plans 60-80 Chili’s reimages in fiscal 2027 and expects to begin reimaging about 10% of the fleet annually in fiscal 2028. With additional traffic capacity, improving throughput and continued restaurant reinvestment, the $5 million AUV level could become an important foundation for Chili’s next stage of growth.
AUV Growth Highlights Competitive Restaurant Productivity
Brinker’s Chili’s concept has pushed average annual unit volumes to about $5 million, up from just over $4.5 million a year earlier, giving the brand a stronger base for traffic growth, margin leverage and future development. Peers Chipotle Mexican Grill, Inc. CMG and Shake Shack Inc. SHAK are also emphasizing restaurant productivity and unit economics as important growth drivers.
Chipotle continues to focus on increasing restaurant productivity through higher throughput, menu innovation and digital engagement. CMG’s high-efficiency equipment package has been installed in more than 1,000 restaurants, with those locations producing two to three more entrees during peak 15-minute periods and generating hundreds of basis points of comparable-sales improvement. Management also views menu innovation as a multiyear lever for increasing AUVs over time.
Shake Shack is similarly relying on high AUVs and restaurant-level productivity to support expansion. Management said strong cash-on-cash returns are being driven by low build costs, healthy margins and high AUVs, while newer Shacks continue to track toward targeted returns. SHAK generated roughly $78,000 in average weekly sales in the second quarter and remains focused on maintaining strong unit volumes as it expands its footprint.
EAT’s Price Performance, Valuation and Estimates
Brinker’s shares have gained 33.9% over the past six months against the industry’s 13.5% decline.
EAT Stock’s Six-Month Price Performance
In terms of its forward 12-month price-to-earnings ratio, EAT is trading at 14.84, down from the industry average of 20.51.
EAT’s P/E Ratio (Forward 12-Month) vs. Industry
Over the past 30 days, the Zacks Consensus Estimate for EAT’s fiscal 2026 earnings per share has decreased, as shown in the chart. However, the estimate for EAT’s fiscal 2026 earnings per share implies a year-over-year uptick of 21%.
EAT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can Brinker Turn Chili's $5M AUV Into Its Next Growth Engine?

Shares of Dutch Bros Inc. BROS have declined 28.6% in the past year compared with the Zacks Retail - Restaurants industry’s 9.2% fall. Despite this underperformance, BROS is trading at a forward 12-month price-to-earnings (P/E) multiple of 38.45X, substantially above the industry average of 20.74X.
Dutch Bros’ prospects are expected to benefit from positive transaction growth, rapid shop development, increasing digital adoption and broader customer occasions through food and beverage innovation.
BROS One-Year Price Performance
Image Source: Zacks Investment Research
However, lower effective pricing is expected to moderate sales growth, while higher coffee and occupancy costs are expected to place modest pressure on full-year adjusted EBITDA margins. So, should investors buy, sell or hold BROS at 38.45X forward earnings? Let’s find out.
How BROS’ Valuation Compares With Restaurant Peers
Dutch Bros’ forward P/E represents an approximately 85% premium to the industry average. BROS also trades at a premium to Starbucks Corporation SBUX, McDonald’s Corporation MCD and Chipotle Mexican Grill, Inc. CMG, which have forward P/E multiples of 31.25X, 18.26X and 25.92X, respectively.
BROS’ P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The premium valuation places greater emphasis on sustained earnings growth and operating performance. Although Dutch Bros continues to expand rapidly, the returns generated from that expansion and the direction of margins remain important to the stock’s outlook.
Shop Expansion and Digital Adoption Support Growth
Dutch Bros expects to open at least 185 system shops in 2026. Approximately 90% of the development pipeline associated with its target of reaching 2,029 shops in 2029 has already been identified.
The development strategy combines increasing density in established regions with expansion into newer markets. The company’s pool of more than 525 operator candidates, with an average tenure of nearly eight years, provides leadership support for the planned shop growth.
Digital and menu initiatives complement the expanding footprint. Dutch Rewards accounts for more than 73% of transactions, while Order Ahead represents approximately 16% of the transaction mix. Greater loyalty penetration provides more opportunities for customer segmentation and personalized promotions, while Order Ahead improves convenience.
The expanded food program is supporting the morning daypart, and Myst Energy Refreshers became a permanent menu item following strong initial demand and retention. These initiatives broaden customer occasions and provide additional avenues for transaction and frequency growth.
BROS Raises Its 2026 Revenue and EBITDA Outlook
Following the second-quarter performance and the Phoenix franchise acquisition, management raised its 2026 revenue outlook to $2.10-$2.13 billion from $2.05-$2.08 billion. Systemwide same-shop sales growth is now expected between 5% and 6%, compared with the prior 4%-6% range.
Adjusted EBITDA is projected between $385 million and $390 million, up from the prior expectation of $370-$380 million.
Over the past 60 days, the Zacks Consensus Estimate for BROS’ 2026 earnings per share (EPS) has increased from 93 cents to 97 cents. Over the same period, EPS estimates for Starbucks, McDonald’s and Chipotle have increased 7%, 0.1% and 1.8%, respectively.
BROS Earnings Estimate Trend
Image Source: Zacks Investment Research
Lower Pricing and Cost Pressures Limit Margin Upside
Dutch Bros expects third-quarter systemwide same-shop sales growth of approximately 4-5%. The expected moderation reflects tougher transaction comparisons, lower effective pricing and the anniversary of the food rollout that began in the third quarter of 2025.
The company rolled off another percentage point of pricing in early July and expects less than one point of effective pricing during the second half. With less than one point of effective pricing expected in the second half, comparable-sales growth will likely depend more on transactions and other ticket drivers, including food.
Full-year guidance incorporates approximately 60 basis points of total cost-of-goods-sold pressure, including the impact of higher coffee costs and the food program. Dutch Bros also expects approximately 50 basis points of occupancy pressure as more of its portfolio shifts toward build-to-suit leases.
Expansion carries substantial capital requirements as well. Capital expenditures are projected between $350 million and $370 million in 2026. New-shop productivity and the maturation of recently opened locations will likely influence the returns generated from this investment.
BROS Stock: Hold at the Current Valuation
Dutch Bros’ growth story remains compelling, supported by positive transactions, rapid shop development, increasing digital adoption and menu innovation. Higher 2026 guidance and rising earnings estimates further strengthen the operating outlook.
Yet much of that growth appears reflected in BROS’ 38.45X forward P/E. Lower pricing support, rising coffee and occupancy costs, heavy capital spending and moderating near-term same-shop sales growth increase the risk of paying too much for future expansion. Existing investors may hold BROS, while new investors may wait for a better entry point or stronger evidence that earnings growth can justify its premium valuation.
BROS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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BROS Trades at 38.45X P/E: Should Investors Buy, Sell or Hold?

Chipotle Mexican Grill, Inc. CMG is strengthening its restaurant leadership pipeline as it works toward its long-term goal of operating 7,000 restaurants across the United States and Canada. With more than 4,200 restaurants as of June 30, 2026, the company expects to open 350-370 new restaurants in 2026 and aims to place an Apprentice in each company-owned restaurant by the end of 2027. Apprentices currently support roughly three-quarters of Chipotle’s restaurants.
The expanded Apprentice program is strategically important as Chipotle scales its footprint. Apprentices provide additional leadership during peak periods, develop Crew Members for future management roles and help General Managers distribute responsibilities more effectively. They also support training and digital execution, while restaurants with Apprentices generally achieve better operational scores. More than 85% of Chipotle’s restaurant managers began their careers as Crew Members, highlighting the company’s emphasis on developing leaders internally.
Chipotle is further strengthening its talent pipeline through its Cultivate Education program with Guild. Nearly 25,000 employees have enrolled over the past decade, while participants experience substantially lower turnover and are promoted more frequently than non-participants. The initiative complements the Apprentice program by helping build the management bench needed to support continued restaurant expansion.
Chipotle’s Expansion Strategy Gains Scale
Chipotle continues to support unit growth through investments in operations, technology and talent. In the second quarter of 2026, it opened 100 company-owned restaurants, while new restaurant productivity remained around 80% and year-two cash-on-cash returns were approximately 60%. These economics reinforce management’s confidence in the long-term opportunity to operate at least 7,000 restaurants across North America.
Chipotle is also reinforcing restaurant execution through enhanced training and more strategic deployment of General Managers and Apprentices during busy dayparts. These efforts have contributed to higher guest-satisfaction scores, improved digital on-time performance and fewer refunds, while General Manager turnover remains at a multiyear low.
Shares of CMG have gained 9.3% in the past three months, outperforming the Zacks Retail - Restaurants industry’s 7.2% decline. The company’s second-quarter results benefited from positive transaction growth, menu innovation, the revamped Rewards program and targeted restaurant investments. However, inflation, higher marketing expenses, wage pressure and continued investments in the guest experience weighed on restaurant-level margins.
CMG’s Zacks Rank & Key Picks
Chipotle currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Retail-Wholesale sector have been discussed below.
Cracker Barrel Old Country Store, Inc. CBRL currently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 128.6%, on average. CBRL stock has surged 77.8% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Cracker Barrel's 2026 sales and EPS indicates a year-over-year decline of 5.3% and 97.8%, respectively, from the prior-year levels.
Five Below, Inc. FIVE currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 68.3%, on average. FIVE stock has gained 25.4% year to date.
The Zacks Consensus Estimate for Five Below’s fiscal 2027 sales and EPS indicates growth of 19.4% and 55.6%, respectively, from the year-ago period’s levels.
FIGS, Inc. FIGS has a Zacks Rank #2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 201.8%, on average. FIGS stock has risen 16.9% year to date.
The Zacks Consensus Estimate for FIGS’ 2026 sales and EPS indicates growth of 19.7% and 89.5%, respectively, from the prior-year levels.
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Chipotle Mexican Grill, Inc.

Recent quarterly and TTM performance

Valuation

Debts

Efficiency

Other ratios

Revenue

Indicator	Apr 26	Jun 26	Jul 26	Aug 26	Sep 26	TTM	Median
P/E	29.82	31.19	—	—	29.31	29.31	17.39
Price/Sales	3.85	3.60	—	—	3.38	3.38	0.66
P/B	—	—	—	—	—	17.11	1.68
P/FCF	—	28.18	32.74	31.52	—	31.52	12.74

Indicator	Apr 26	Jun 26	Jul 26	Aug 26	Sep 26	TTM	Median
ROE	—	53.28	—	—	—	53.28	15.36
ROA	—	15.80	—	—	—	15.80	4.97
ROI	—	—	—	—	—	0.00	8.47
Net Worth	—	43.49	—	—	40.87	40.87	0.82
Quick Ratio	—	0.68	—	—	—	0.68	0.85
Current Ratio	—	—	—	—	—	0.92	1.38

Indicator	Apr 26	Jun 26	Jul 26	Aug 26	Sep 26	TTM	Median
Net Profit Margin	—	11.43	—	—	—	11.43	5.79
Operating Margin	—	14.65	—	—	—	14.65	8.36
Gross Margin	—	—	—	—	—	24.65	39.57
Return on tangible equity	—	53.72	—	—	—	53.72	22.12

Indicator	Apr 26	Jun 26	Jul 26	Aug 26	Sep 26	TTM	Median
EPS	0.24	—	0.33	—	—	0.33	0.52
EPS Forecast	0.24	—	0.32	—	—	0.32	0.51
Revenue	—	—	—	—	—	3.09B	193.00M
Gross Profit	—	845.00M	—	—	—	845.00M	—
EBITDA	—	624.00M	—	—	—	624.00M	—