--- title: "CMG Stock Analysis: Should You Buy Chipotle Following Its Recent Q2 Report?" description: "Chipotle Mexican Grill (NYSE:CMG) reported strong Q2 earnings, beating expectations with a revenue of $2.97 billion and earnings per share of 34 cents. Despite concerns about margins, the company's sa" type: "news" locale: "en" url: "https://longbridge.com/en/news/209857072.md" published_at: "2024-07-25T18:49:02.000Z" --- # CMG Stock Analysis: Should You Buy Chipotle Following Its Recent Q2 Report? > Chipotle Mexican Grill (NYSE:CMG) reported strong Q2 earnings, beating expectations with a revenue of $2.97 billion and earnings per share of 34 cents. Despite concerns about margins, the company's same-store sales grew 11% year-over-year. Chipotle's commitment to ethically sourced, natural ingredients and its small menu contribute to its success. With a 50-for-1 stock split, CMG stock has faced selling pressure, but remains a top option for investors seeking growth in the quick-service restaurant market. Emerging as one of the best growth and restaurant stocks, **Chipotle Mexican Grill** (NYSE:**CMG**) continues to gain traction due to its unique menu and in-house operations. In Q1 2024, the company brought in a $2.7 billion revenue. Additionally, the company’s 50-for-1 split also was a key driver of a 21% year-to-date surge in CMG stock thus far this year. However, with earnings now in the rear-view mirror, and Chipotle recently reporting its Q2 earnings, let’s dive into what was reported, and why the stock could be poised for more upside from here. ## Diving Into the Numbers Chipotle reported its Q2 numbers yesterday after the market closed. With the stock sinking more than 15% in the month before earnings, investors were a little concerned about margins. CMG stock was down 1% in afternoon trading. Earnings per share came in at 34 cents on an adjusted basis, which beat expectations of 32 cents of adjusted earnings. Revenue also beat, with the company bringing in $2.97 billion on its top-line, exceeding expectations of $2.94 billion. Various price hikes have helped the company post continued earnings growth, and investors clearly like the cash flow growth profile this stock continues to provide. Impressively, the company’s same-store sales grew 11% on a year-over-year basis, topping expectations by a rather wide margin. Stable growth is what many analysts are now expecting moving forward. However, as with many other restaurant stocks seeing volatility in their recent numbers, higher input costs combined with lower-priced offerings are weighing on margins. ## Why Chipotle Continues to Boom With its motto, “Food with Integrity,” Chipotle founder Steve Ells still stands by this vision. The company is committed to providing excellent food produced ethically with natural ingredients. The company adopted a non-GMO policy in 2013, and has been able to offset rising costs by raising prices even faster, something its competitors have not had the luxury of doing. Now, it’s true that same-store sales growth has decreased on a quarter-over-quarter basis. But it’s also true that these numbers beat expectations by a rather wide margin. Thus, it will be interesting to see how CMG stock trades into next week. That said, I do think Chipotle’s small menu is contributing significantly to its success. The company continues to minimize food waste by reducing the number of fresh ingredients needed. Quick service has been another benefit for consumers, as fewer menu options mean fewer mistakes. Indeed, for those seeking a quick-service restaurant stock with growth in this market, Chipotle remains a top option in the market for good reason ## Buy and Hold CMG Stock Chipotle has surged nearly 4x over five years and is up 28% year-to-date. After a 50-for-1 stock split, this stock has faced pressure. However, as with most declines in the past, this selling pressure essentially represented a buying opportunity. Few quick service restaurant providers give investors the kind of growth Chipotle does, and its recent numbers speak to this thesis. There’s a lot to like about the company’s forward prospects, which is why I remain bullish on CMG stock. *On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.* *On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.* Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective. Consumer Discretionary, Retail, Restaurant Growth Stocks ### Related Stocks - [CMG.US - Chipotle Mexican Grill](https://longbridge.com/en/quote/CMG.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 墨式烧烤｜10-K：2025 财年营收 119 亿美元超过预期 | | [Link](https://longbridge.com/en/news/274874412.md) | | NEOS 投资管理有限责任公司持有墨式烧烤公司价值 328 万美元的股份 | NEOS Investment Management LLC 在第三季度将其在墨式烧烤的股份增加了 67.4%，目前持有 83,563 股，价值约为 328 万美元。其他机构投资者也调整了他们的持股，机构持有该股票的比例为 91.30%。分 | [Link](https://longbridge.com/en/news/276440525.md) | | 最高法院刚刚推翻了特朗普的外交政策 | 特朗普将如何在不征收关税的情况下让各国按照他的意愿行事？ | [Link](https://longbridge.com/en/news/276489158.md) | | 对 Chipotle Mexican Grill Inc 市盈率的观察 | 墨式烧烤公司（NYSE:CMG）目前的交易价格为 38.50 美元，下跌 2.66%。该股票在过去一个月内下跌了 7.03%，在过去一年内下跌了 26.83%。其市盈率为 33.96，低于行业平均水平 49.69，这表明可能被低估或增长预期 | [Link](https://longbridge.com/en/news/276365000.md) | | 一年后，Chipotle Mexican Grill 将会处于什么位置？ | 投资者希望忘记这家餐厅股票过去 12 个月下跌 36% 的事实 | [Link](https://longbridge.com/en/news/276445181.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.