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 remains a high-quality business with very strong profitability, but the market is already pricing in noticeably more than the current dynamics confirm. In terms of efficiency, the company looks very strong: ROE of 48.44%, ROA of 16.79%, and return on tangible equity of 47.32% are significantly above industry medians, while operating margin of 15.27% and net margin of 11.96% also look convincing. At the same time, margin trends over recent periods have been deteriorating: gross margin declined to 25.38% from 26.67% a year earlier, operating margin to 15.27% from 17.01%, and net margin to 11.96% from 13.60%. This is an important signal because for a company with a premium valuation, margin durability is usually the key to further upside. Valuation multiples remain high even for a strong brand: P/E of 31.19, P/S of 3.74, P/B of 18.18, and P/FCF of 29.90 are noticeably above industry medians, indicating limited room for revaluation. It is especially concerning that EPS TTM of 0.24 and EPS forecast of 0.24 remain below industry benchmarks, meaning earnings per share have yet to show the acceleration that could justify such an expensive valuation. A key strength remains the absence of long-term debt and a zero debt/equity ratio, which reduces financial risk and supports balance sheet stability. However, liquidity is not ideal: the current ratio of 0.92 is below 1, the quick ratio of 0.88 is only around normal, and cash on hand has fallen to $1.049 billion from higher levels during the year. Revenue remains large and stable, but its growth does not appear strong enough to offset margin pressure and high multiples. Shareholders’ equity has declined noticeably compared with previous quarters, while liabilities have increased, weakening balance sheet quality despite the absence of debt. Overall, the fundamentals remain solid, but not strong enough to support the current valuation without a modest conservative downward adjustment. For an investor, this is a story of a high-quality, profitable, and nearly debt-free business, but one showing signs of slowing operating momentum and a market valuation that is too expensive relative to current growth rates.

Chipotle Mexican Grill, Inc.

Сильный индекс, незначительно упал. Быки в растерянности.

Strong index, slightly down. The bulls are confused.

Сильный индекс, значительно вырос. Рынок на стороне быков.

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

Средний индекс, незначительно вырос. Приток средств в лонги остается положительным.

Medium index, slightly up. The inflow of funds into longs remains positive.

Strong profitability and zero debt support CMG, but expensive valuation multiples, weakening margins, and weak liquidity limit upside potential.

Key Points
Chipotle raised its full-year comparable sales forecast to low single digits.
Margins continued to fall, and adjusted EPS was flat.
Investors bid the stock higher as it reported its fastest comp sales growth in six quarters.
Chipotle (NYSE:CMG) came into the second-quarter earnings report with its back against the wall. The stock had fallen roughly 50% since its peak in late 2024 as growth slowed, it lost star CEO Brian Niccol to Starbucks, and the broader fast-casual industry struggled. Chipotle’s valuation, which had been priced for endless growth, came back down to earth.
With its second-quarter report now in, the burrito roller didn’t deliver a blowout report, but the results were strong enough to lift the stock after hours, up 6%.
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Chipotle reported 2.2% comparable sales growth, its best result in six quarters, and revenue rose 9.3% to $3.33 billion, matching analyst estimates. New store openings boosted top-line growth, as Chipotle added 100 company-owned restaurants in the quarter, bringing the total to more than 4,200. Chipotle continued to see margins shrink as both food and labor costs rose, as Chipotle faced inflation in both categories, and general and administrative expenses grew faster than revenue. Menu price increases help offset the cost inflation.
Operating margin fell from 18.2% to 15.7%, and it reported adjusted earnings per share of $0.33, flat from a year ago, and ahead of the consensus at $0.32. Share buybacks lowered shares outstanding by 5%, boosting EPS.
CEO Scott Boatwright said, “Our positive results reflect the momentum we’re building as our Recipe for Growth strategy continues to take shape.” He noted the impact of menu innovation, the revamped Chipotle Rewards program, hospitality improvements, and the expanded catering business.
However, what really seemed to boost the stock was its improved guidance: the company now sees full-year comparable sales growth in the low single digits, up from a previous forecast of flat comparable sales.
Image source: Chipotle.
Is the turnaround here?
Chipotle’s second quarter certainly marks an improvement for the business. However, it’s a modest one, given that comparable sales are still in the low single digits, margins are falling, and adjusted earnings per share are flat.
At this point, the stock may be benefiting from low expectations and the fact that its valuation has become much more attractive as it has fallen, trading at a price-to-earnings ratio of 31 before the after-hours pop.
That’s a fair price to pay for a stock with Chipotle’s track record, which is still planning to virtually double its number of restaurants. However, for the stock to move meaningfully higher, comparable sales will have to accelerate, and margins will need to rebound.
Chipotle isn’t alone among fast-casual chains in facing challenges. The so-called K-shaped economy has put pressure on key customer segments, such as young adults and lower-income customers, which is one reason Chipotle revamped its rewards program.
That’s a good reason to give Chipotle some time to return to growth, but investors shouldn’t mistake a relief rally for a turnaround. We’ll need to see strong comp sales growth and real profit growth to know the burrito chain is back on a healthy path.
Should you buy stock in Chipotle Mexican Grill right now?
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Jeremy Bowman has positions in Chipotle Mexican Grill. The Motley Fool has positions in and recommends Chipotle Mexican Grill. The Motley Fool recommends the following options: short September 2026 $35 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Chipotle Raises Full-Year Guidance After 9.3% Revenue Jump. Is the Turnaround Finally Here?

Wednesday, July 29th, 2026
A very eventful Hump Day has transpired in today’s trading session, particularly upon the press conference following the Fed monetary policy decision today, which kept interest rates steady once again. Earnings reports for the Mag 7 and more followed the closing bell, with drastically mixed results.
FOMC Decides to Hold Rates at +3.50-3.75%
The Federal Open Market Committee (FOMC) has once again voted to keep the ongoing +3.50-3.75% Fed funds rate in place, for now the fifth-straight meeting. The statement issued by the Fed was once again short on words and devoid of guidance, although it did include three dissents — Cleveland’s Beth Hammack, Minneapolis’ Neel Kashkari and Dallas’ Lorie Logan all voted for a 25 basis-point (bps) hike. These are the same Fed members who voted to remove the “downward bias” language from the final FOMC statement under ex-Fed Chair Jerome Powell’s tenure.
That said, there were some real keys to what the Fed considers important: its “2 percent goal” (notice no decimal placement) was cited directly. “There is no soft inflation target… (nor) a soft implicit target,” is how the Fed Chair characterized this in his presser, which gives credence to the idea that the +2.0% interest rate target under Powell remains intact. The culprit, then, for this higher-than-optimal inflation came from “supply shocks that have driven price increases” — meaning, perhaps especially, oil price increases based on the war in Iran, which is as close as the Fed came to saying that present inflation is “transitory.”
Warsh was not big on giving keen insights into the decisions on the Fed’s current monetary policy as he speaks to the Wall Street press pool. In fact, he proved quite adept and speaking at length without betraying any new information not seen in the brief statement. Bond markets were not pleased with his performance, however: the 10-year yield ramped up from +4.63% earlier in the day to +4.69% as of the end of trading. The 2-year slid a tad to +4.26%, marking the first time in several session the yield curve has been more than 40 bps.
Likely, Warsh’s majority decision demonstrates a hopefulness about a timely end to the aggressions in and around Iran, which affect oil prices every time the Strait of Hormuz chokes off its normal traffic levels. (It would have been nice to get some confirmation on this from Warsh himself.) There seems to be little appetite for dampening economic output while the events in Iran remain up in the air.
Earnings Reports After the Bell: META, MSFT, QCOM & More
Meta Platforms META shares are down another -7% in the after-market today, following mixed fiscal Q2 results. Earnings took a couple big one-time hits and came in nearly a buck light of the Zacks consensus to $6.18 per share, missing on the bottom line for the first time since 2022. Revenues of $60.80 billion surpassed the $6.21 billion — well above the $47.52 billion brought in a year ago.
CapEx remained high but didn’t get revised upward on the top end (it did raise on the bottom end): $130-145 billion for the current fiscal year, with free cash flow remaining positive at $784 million. Daily Active People bounced back from its first-ever drop a quarter ago to 3.6 billion. Revenue guidance was lackluster, so the shares are digging the hole deeper, year to date.
Microsoft MSFT was also impacted by one-time items on its bottom line, but these were to the positive, including a $3.2 billion gain from Anthropic. Earnings overall reached $4.74 per share on $90.01 billion in revenues, easily bettering the estimates of $4.21 per share and $87.44 billion, respectively. CapEx spending was in-line at $41 billion, on pace for its guided full-year rate of $190 billion. Azure growth was strong, +43%, while Co-Pilot seats have doubled in the past three quarters.
Qualcomm QCOM shares are off their late-market lows, -4.4%, on a one-cent miss on earnings to $2.21 per share, down -20% year over year. Revenues, on the other hand, reached $9.95 billion, well ahead of the $9.71 billion in the Zacks consensus. Next-quarter earnings guidance lowered to $2.15 per share at the midpoint, as Chinese smartphone business fell in the quarter. Qualcomm intends to shift toward non-handset chips as its main revenue source in the future.
Starbucks SBUX was also mixed in its fiscal Q3 report today, beating solidly on earnings — +85 cents per share, versus +66 cents expected, up from 50 cents per share a year ago. Revenues of $9.3 billion, however, were below the $9.44 billion analysts were expecting. It’s the fourth-straight month of comp growth, meaning CEO Brian Niccol’s turnaround looks to be in effect. Shares are up nearly +7% on the news.
Speaking of Brian Niccol, his former company, Chipotle Mexican Grill CMG posted modest outperformance on both top and bottom lines this afternoon, beating on the bottom line by a penny to $0.33 per share on revenues of $3.35 billion, a smidge above the $3.32 billion anticipated. Comps sales rose +2.2% in the quarter. Notably, no cyclospora contagion hit the company during the Q2. Shares are up +2.7% on the news.
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FOMC Holds, Market Folds, Q2 Earnings Mostly Bold

For the quarter ended June 2026, Chipotle Mexican Grill (CMG) reported revenue of $3.35 billion, up 9.3% over the same period last year. EPS came in at $0.33, compared to $0.33 in the year-ago quarter.
The reported revenue represents a surprise of +0.81% over the Zacks Consensus Estimate of $3.32 billion. With the consensus EPS estimate being $0.32, the EPS surprise was +3.13%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Chipotle performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Company-operated restaurants at end of period: 4,186 versus 4,160 estimated by eight analysts on average.
Comparable restaurant sales increase: 2.2% versus 1.4% estimated by eight analysts on average.
Company-operated restaurants opened: 100 versus the five-analyst average estimate of 75.
Company-operated restaurants at beginning of period: 4,090 compared to the 4,090 average estimate based on three analysts.
Average restaurant sales - TTM: $3.1 million versus $3.09 million estimated by three analysts on average.
Revenue- Food and beverage: $3.33 billion versus $3.31 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +9.4% change.
Revenue- Delivery service: $15.77 million versus $16.02 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +0.8% change.
Shares of Chipotle have returned -1.4% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Chipotle (CMG) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates

Chipotle Mexican Grill (CMG) came out with quarterly earnings of $0.33 per share, beating the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.33 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +3.13%. A quarter ago, it was expected that this Mexican food chain would post earnings of $0.24 per share when it actually produced earnings of $0.24, delivering no surprise.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Chipotle, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $3.35 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.81%. This compares to year-ago revenues of $3.06 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Chipotle shares have lost about 9.4% since the beginning of the year versus the S&P 500's gain of 8.5%.
What's Next for Chipotle?
While Chipotle has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Chipotle was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.29 on $3.28 billion in revenues for the coming quarter and $1.13 on $12.93 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, El Pollo Loco Holdings (LOCO), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This Tex-Mex fast food chain is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of +3.6%. The consensus EPS estimate for the quarter has been revised 8.3% higher over the last 30 days to the current level.
El Pollo Loco Holdings' revenues are expected to be $131 million, up 4.1% from the year-ago quarter.
Should You Invest in Chipotle Mexican Grill, Inc. (CMG)?
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Chipotle Mexican Grill (CMG) Q2 Earnings and Revenues Beat Estimates

(RTTNews) - Chipotle Mexican Grill Inc. (CMG-B) revealed a profit for second quarter of $403.547 million
The company's earnings came in at $403.547 million, or $0.32 per share. This compares with $436.127 million, or $0.32 per share, last year.
Excluding items, Chipotle Mexican Grill Inc. reported adjusted earnings of $418.906 million or $0.33 per share for the period.
The company's revenue for the period rose 9.3% to $3.348 billion from $3.063 billion last year.
Chipotle Mexican Grill Inc. earnings at a glance (GAAP) :
-Earnings: $403.547 Mln. vs. $436.127 Mln. last year. -EPS: $0.32 vs. $0.32 last year. -Revenue: $3.348 Bln vs. $3.063 Bln last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Chipotle Mexican Grill Inc. Q2 Sales Increase

Key Points
Chipotle reports second-quarter results after Wednesday's market close, July 29, with itsearnings calllater that afternoon.
First-quarter comparable sales rose 0.5% on a 0.6% increase in transactions, after comparable sales fell 1.7% in 2025.
The stock trades about 30% below its 52-week high, while the average price target across 35 analysts sits about 30% higher.
Chipotle Mexican Grill (NYSE: CMG) reports second-quarter results after the market closes on Wednesday, July 29, with itsearnings callset for 4:30 p.m. ET.
At about $33 as of this writing, shares sit about 30% below their 52-week high of $46.61, and about 18% above their 52-week low. Meanwhile, the 35 analysts covering the burrito chain carry an average price target of about $43 -- roughly 30% above the stock.
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The market, in other words, is priced as if the growth stock's best days are behind it. But the analysts, on average, don't seem to believe that. Wednesday's report should say a lot about which side has it right, and the answer arguably hinges on two lines deep in the release: transactions and restaurant-level margin.
The number to watch is transactions
For most of 2025, Chipotle's problem was that fewer people came. Comparable restaurant sales fell 4% year over year in the second quarter of 2025, driven by a 4.9% drop in transactions. The fourth quarter was better but still negative, with comparable sales down 2.5% on a 3.2% transaction decline.
For the full year, comparable sales fell 1.7%, with transactions down 2.9%, even as a higher average check offset part of the decline.
The first quarter of 2026 broke the pattern. Comparable sales rose 0.5%, and the growth came from traffic. Transactions increased 0.6%, while the average check slipped 0.1%.
It's a modest number, but I'd argue it's the right kind -- more customers, not just higher prices. CEO Scott Boatwright said the quarter "exceeded expectations" as the company advanced its "Recipe for Growth" strategy.
Worth noting, too: the quarter Chipotle is about to report laps that minus-4% period from a year ago, the softest comparison on the calendar. If transactions can't grow against that bar, the recovery case weakens considerably.
The rest of the growth machine never stopped, either. First-quarter revenue rose 7.4% year over year to $3.1 billion. The company opened 49 restaurants during the period, 42 of them with a Chipotlane drive-through lane, bringing its base to about 4,090 company-owned locations. And digital orders ran at 38.6% of food and beverage revenue.
Full-year guidance calls for 350 to 370 new locations, including 10 to 15 run by international partners. That works out to nearly a new restaurant a day.
What the recovery is costing
Traffic is coming back at a price, though. Chipotle's adjusted restaurant-level operating margin (the profitability of the restaurants themselves, before corporate costs) was 23.7% in the first quarter, down from 26.2% a year earlier. Operating margin fell to 12.9% from 16.7%. And non-GAAP (adjusted) earnings per share declined 17.2% year over year to $0.24.
So Wednesday's report has to show two things moving the right way at once. A second consecutive quarter of positive transactions would show the traffic turn is holding. And an adjusted restaurant-level margin near the first quarter's 23.7%, rather than another step down, would show the company isn't simply buying its customers back.
Guidance matters, too. Management's current outlook calls for about flat comparable sales in 2026. Holding that line, or nudging it higher, would say the first quarter wasn't a fluke.
Meanwhile, the valuation bar the stock has to clear is not demanding.
At about 29 times earnings, Chipotle trades at about the same multiple as the S&P 500, and at about 27 times forward earnings estimates. At its 52-week high, the market paid nearly $47 for this business. It now pays about $33.
Of course, a cheaper-than-usual Chipotle isn't automatically a buy. Restaurant margins are still sliding, and the traffic recovery is, so far, exactly one quarter old. A single quarter could easily prove to be noise.
So, should investors buy ahead of the report? I personally wouldn't. At a market multiple, Chipotle doesn't need a heroic quarter, just confirmation. But with the whole case resting on one quarter of positive traffic, waiting a day for proof seems like a fair trade. If transactions hold positive and the margin stops sliding, I'd get interested, even at a somewhat higher price. If traffic flips negative again, the market's skepticism will have been right, and a better entry point could follow.
Wednesday afternoon, the transaction line is the first number I'll check.
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Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill. The Motley Fool recommends the following options: short September 2026 $35 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Chipotle Reports Wednesday With Its Stock 30% Below Its High and 35 Analysts Pointing 30% Higher.

Key Points
Chipotle stock is down 50% from its peak three years ago.
The burrito chain hasn't grown comparable sales by more than 0.5% in at least five quarters.
The company revamped its loyalty program in the second quarter.
Chipotle Mexican Grill (NYSE: CMG) has been a top-performing stock throughout its history, but more recently, the company has disappointed investors.
The stock is down more than 50% from its peak a few years ago, as it lost star CEO Brian Niccol, same-store sales growth slowed, and its premium valuation compressed as investors dialed back estimates for its long-term growth.
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Chipotle is down 10% year-to-date, as its results have underwhelmed. In the first quarter, comparable sales rose 0.5%. In comparison, margins fell sharply with its operating margin declining from 16.7% to 12.9% due in part to its biennial All Managers Conference and higher labor costs from labor inflation.
So what should investors expect when Chipotle reports second-quarter earnings? Let’s take a closer look.
Image source: Chipotle.
Can Chipotle bounce back?
Chipotle’s same-store sales in the first quarter were its best performance in at least five quarters, showing the company’s challenges aren’t new. During that time, average restaurant sales declined each quarter, reaching $3.09 million in the first quarter.
Chipotle has struggled for many of the same reasons as its peers. Inflation has pinched consumers, and the company has seen a fall-off in the most economically sensitive customers, including lower-income customers and young adults. Like other fast-casual chains, Chipotle is dealing with the perception that its prices are too high, and it’s also faced stiffer competition from sit-down casual dining chains like Chili’s.
The war in Iran has pushed inflation higher in the second quarter, meaning Chipotle is unlikely to get any relief from discretionary spending at the macro level.
There are some reasons for Chipotle investors to be optimistic. According to data from Placer.ai, a location intelligence platform that tracks store traffic, Chipotle posted positive same-store traffic in every month of the second quarter, averaging about 1% growth.
The collapse in the stock over the last few years also means it is much more reasonably priced than it once was, trading at a price-to-earnings ratio of about 30, about even with the S&P 500. That’s not a great price for a company struggling to grow on the bottom line, but it also means the stock should be stable unless its sales growth turns meaningfully negative.
The company also relaunched its rewards program, adding perks like monthly free food drops and making it easier to redeem points. Sign-ups spiked when the company announced the program.
What to expect from the Q2 report
Based on the impact of the new loyalty program and Placer.ai data, I think Chipotle is set for same-store sales growth. However, inflation and the loyalty program are likely to continue to pressure the bottom line, and that is what investors are most judging the company on at this point.
In fact, the analyst consensus calls for earnings per share to edge down from $0.33 to $0.32. Given that, I think investors will have to be patient with a Chipotle comeback. If profits fall again, the stock is likely to sell off. Chipotle remains a show-me story at this point. Management will have to show that it has overcome the challenges of the last few years.
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The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Chipotle Mexican Grill wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $377,990!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
Now, it’s worth noting Stock Advisor’s total average return is 896% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 28, 2026.
Jeremy Bowman has positions in Chipotle Mexican Grill. The Motley Fool has positions in and recommends Chipotle Mexican Grill. The Motley Fool recommends the following options: short September 2026 $35 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Chipotle Mexican Grill's Next Earnings Report on July 29 Could Send the Stock Sliding. Here's Why.

Key Points
Sweetgreen is down 86% from its peak in late 2024.
According to third-party data, the company returned to positive same-store traffic in the second quarter.
Sweetgreen still has a lot of long-term growth potential, and sentiment toward the stock could easily flip.
It's an understatement to say Sweetgreen (NYSE: SG) has stumbled recently.
The fast-casual salad chain has plunged since it peaked in late 2024, down 86%. Almost everything that could go wrong for the salad slinger has.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Same-store sales have turned sharply negative as concerns about high food prices, a change to its loyalty program, and persistent inflation have all weighed on results. Additionally, the company surprised investors when it sold Spyce, the business containing the Infinite Kitchen, though it retained the right to use that technology, which helps automate food prep.
Showing how bad things have gotten for Sweetgreen, same-store sales fell 12.8% in the first quarter, and revenue was down 2.9% to $161.5 million, as the company continues to open new stores.
However, even as the stock has languished, there are signs that it could be turning the corner.
Why Sweetgreen could be poised for a comeback
Earlier this year, Sweetgreen introduced wraps as a lower-priced option to push back on complaints that its menu had gotten too expensive and to give customers a handheld option. The move rounds out its menu and, with bowls and wraps, gives it a similar offering to Chipotle and Cava, two top fast-casual chains.
According to some anecdotal observations and third-party data, the wraps appear to be driving a comeback. Placer.ai, a location intelligence platform that estimates foot traffic for national restaurants and retailers, found that Sweetgreen's same-store traffic turned positive in the second quarter after falling in every month since at least last July. Following an 8.4% decline in March, according to Placer, same-store visits were down 2.9% in April, then up 1% in May, and 3.9% in June.
Placer's data for the first quarter seemed to underestimate the decline in traffic, which was down 11.2%, so investors should take the numbers with a grain of salt, but the trend is clear. Store traffic dramatically improved in the second quarter, and that clearly bodes well for the business.
In addition to the tailwind from the wraps, Sweetgreen is also lapping a change in its loyalty program that turned off some customers, so comparable sales should benefit as that headwind rolls off.
Why Sweetgreen could pop next month
Sweetgreen is priced like a broken stock, but it still has promising growth ahead, and the last few quarters could prove to be a temporary setback. The stock trades at a price-to-sales ratio of just 1, and though it's not currently profitable, profits shouldn't be far away if it can get back to steady comparable sales growth. Sweetgreen's guidance calls for just that, and the Placer.ai data shows the company appears to be ahead of the curve.
If it can deliver positive comps in its second-quarter report on Aug. 6, or just report that it exited the quarter with positive comps, the stock could rip higher. After all, this is still a popular chain, with average sales per restaurant still exceeding $2.5 million.
Should you buy stock in Sweetgreen right now?
Before you buy stock in Sweetgreen, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sweetgreen wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $377,990!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
Now, it’s worth noting Stock Advisor’s total average return is 896% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 27, 2026.
Jeremy Bowman has positions in Cava Group, Chipotle Mexican Grill, and Sweetgreen. The Motley Fool has positions in and recommends Cava Group and Chipotle Mexican Grill. The Motley Fool recommends Sweetgreen and recommends the following options: short September 2026 $35 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Prediction: This Beaten-Down Growth Stock Will Soar in August

Key Points
The key to the chain's investment thesis rests on its ability to steadily open hundreds of profitable new restaurants every year.
Same-store sales have stabilized, and investors should monitor whether it can continue to reinvigorate its customer visit numbers without sacrificing restaurant-level margins.
With the stock down sharply from recent highs and its valuation less demanding, long-term investors may find today's price more attractive than it has been in years.
Chipotle Mexican Grill (NYSE: CMG) is set to report its second-quarter results on July 29, and after a rough stretch for the burrito maker, plenty of investors are wondering whether to buy ahead of the print. That's a fair question, but I think it is the wrong one to obsess over. The smarter approach is to ask how this quarter fits into Chipotle's longer story.
What to watch on July 29
The headline number will be same-store sales, and the recent trend is encouraging. After comparable sales declined for several quarters, Chipotle eked out a 0.5% comps gain in Q1 as customer traffic grew again thanks to menu innovations and limited-time offerings.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Management has guided for roughly flat same-store sales this year, with acceleration expected as 2026 goes on. So the key things to watch on July 29 will be whether that fragile traffic recovery is building momentum and whether margins are holding up while the company reinvests.
Here is why I would not let a single earnings report decide for me. Chipotle's real engine is not quarterly comps; it is relentless unit growth. The company plans to open 350 to 370 new restaurants this year, keeping up its 8% to 10% annual expansion pace, with a heavy emphasis on Chipotlanes, its drive-thru lanes designed for pickup of digital orders. The company has a long runway toward its long-term goal of roughly 7,000 North American locations, and its individual restaurants boast some of the best economics in the industry.
That combination of opening more high-returning stores year after year is what compounds its value for shareholders over time. A single soft quarter or a single strong one will barely change that trajectory. If anything, the recent weakness has cooled Chipotle's once-lofty valuation. For patient investors, that's more an opportunity than a warning.
Should you buy Chipotle before July 29?
I would not rush in just to beat an earnings date, because trying to trade a single quarter is closer to gambling than investing. But if you believe in Chipotle's long-term story, its durable brand, its proven store model, and its plans for years of unit growth, the recent pullback and early signs of a traffic turnaround make this a reasonable time to start a position or add to one, regardless of what the upcoming earnings report reveals.
Should you buy stock in Chipotle Mexican Grill right now?
Before you buy stock in Chipotle Mexican Grill, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Chipotle Mexican Grill wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $377,990!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
Now, it’s worth noting Stock Advisor’s total average return is 896% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 25, 2026.
Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill. The Motley Fool recommends the following options: short September 2026 $35 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Buy Chipotle Stock Before July 29?

Chipotle Mexican Grill, Inc. CMG is scheduled to report second-quarter 2026 results on July 29.
CMG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 2.7%.
Trend in the Estimate Revision of CMG
The Zacks Consensus Estimate for second-quarter earnings per share (EPS) is pegged at 32 cents, indicating a decline of 3% from 33 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $3.32 billion. The metric suggests a rise of 8.4% from the year-ago quarter’s figure.
Chipotle Mexican Grill, Inc. Price and EPS Surprise
Let us take a look at how things might have shaped up in the quarter to be reported.
Factors Likely to Shape CMG’s Quarterly Results
Chipotle’s second-quarter performance is likely to have been supported by menu innovation, stronger customer engagement and continued restaurant expansion. The company anticipated comparable restaurant sales growth of approximately 1% in the quarter under review. Menu pricing of about 1.5% and a broadly flat sales mix are also expected to have supported the top line. The return of Chipotle Honey Chicken and continued demand for Cilantro Lime Sauce are likely to have aided transactions and average check.
The refreshed Chipotle Rewards program is expected to have supported customer acquisition, re-engagement and visit frequency. Following the program’s April relaunch, the company recorded a nearly 25% increase in daily enrollments. The continued rollout of high-efficiency equipment is likely to have aided CMG’s performance in the second quarter.
However, elevated input costs are likely to have pressured profitability. Chipotle anticipated cost of sales of approximately 30% of revenues in the quarter to be reported, reflecting mid-single-digit inflation and higher avocado, dairy and beef costs. Labor costs were expected to remain in the low-25% range, with wage inflation in the low-single digits.
Continued investments in technology, personnel and restaurant operations are also likely to have constrained margin expansion in the to-be-reported quarter. Our model predicts second-quarter restaurant-level margins to decline 240 basis points year over year to 25%.
What Our Model Says About CMG Stock
Our proven model predicts an earnings beat for Chipotle this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here.
Earnings ESP for CMG: Chipotle has an Earnings ESP of +0.84%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Chipotle’s Zacks Rank: The company currently carries a Zacks Rank #3.
Other Stocks With the Favorable Combination
Here are a few other stocks from the Zacks Retail-Wholesale sector, which, according to our model, also have the right combination of elements to post an earnings beat this reporting cycle.
BJ's Restaurants, Inc. BJRI currently has an Earnings ESP of +7.51% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the to-be-reported quarter, BJRI’s earnings are expected to decline 10.3%. BJRI’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 136%.
Sweetgreen, Inc. SG has an Earnings ESP of +11.54% and a Zacks Rank of 2 at present.
In the to-be-reported quarter, Sweetgreen’s earnings are expected to register a 35% year-over-year increase. Sweetgreen’s earnings missed estimates in each of the trailing four quarters, the average miss being 42.4%.
The Cheesecake Factory Incorporated CAKE currently has an Earnings ESP of +2.76% and a Zacks Rank of 3.
In the to-be-reported quarter, Cheesecake Factory’s earnings are expected to register a 0.9% year-over-year increase. CAKE’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.7%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	30.74 19.50
Price/Sales	3.68 0.68
P/B	17.91 1.79
P/FCF	29.47 14.32

Indicator	TTM Median
ROE	48.44 14.96
ROA	15.98 4.87
ROI	0.00 8.60
Net Worth	43.63 0.87
Quick Ratio	0.88 0.86
Current Ratio	0.92 1.40

Indicator	TTM Median
Net Profit Margin	11.96 5.77
Operating Margin	15.27 8.17
Gross Margin	24.65 39.42
Return on tangible equity	48.80 21.16

Indicator	TTM Median
EPS	0.24 0.49
EPS Forecast	0.24 0.46
Revenue	3.09B 192.50M
Gross Profit	719.00M —
EBITDA	494.00M —

Chipotle Mexican Grill, Inc.

Recent quarterly and TTM performance

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Revenue