McDonald's Stock, Chipotle Peg New Highs Ahead Of Tuesday Reports

Chipotle is expected to have a 57% earnings increase while McDonald's revenue decreases.

McDonald's Stock, Chipotle Peg New Highs Ahead Of Tuesday Reports

McDonald's, Chipotle and other fast-food giants will report their quarterly results on Tuesday. Fast food giant McDonald's releases its quarterly results in the morning while Chipotle announces theirs after the close of business. McDonald's and CMG stock are both at new highs before their earnings reports.

Baird increased its price target on McDonald's and Chipotle stocks on Friday. Analyst David Tarantino stated that both companies could meet or surpass Q1 earnings per shares and comparable sales estimates.

Tarantino increased his target price for MCD to 312 from 288, and kept an outperform ranking. He increased his CMG target from 1,900 to 2,000 and maintained an outperform ratings.

Earnings at The Golden Arches

FactSet polled analysts who expect McDonald's adjusted earnings to increase 2.2%, to $2.33 a share. Revenue is expected to decline 1.4% to $5.585 billion. The sales stagnated over the last three quarters with an average 3% drop.

The same-store sales growth rate is expected to be 8.7% in Q4 2022, compared with 12.6% and 11.8% respectively during Q1 2022.

Wall Street reports a 14.5% increase in free cash flow to $1.984 Billion.

MCD's stock is now in a zone of buy above its recent consolidation, thanks to a six-week gain. MarketSmith shows that shares broke out on 3 April after clearing the 281.77 purchase point. The current buy zone extends to 295.85, extending 5% beyond the 281.77 buy point.

MCD shares are trading at near-all-time highs. They climbed to 293,04 on Monday before the report. Shares are up more than 11% in 2023.

Chipotle Earnings

Chipotle, based in Newport Beach, Calif., had a hot streak of earnings last year. The company grew its profits by 49% during Q4 and averaged 28.75% growth quarterly. The fast-casual Mexican restaurant chain's revenue growth wasn't as impressive, with an average of 14.5% quarterly growth.

The same-store sales will rise 8.6%. This is slightly less than the 9.0% growth of last year, but better than the 5.6% increase at the end of the year.

Analysts expect free cash flow to jump 41%, reaching $212 million.

CMG Stock

Chipotle's shares are now trading in the cup-base buy zone after exceeding the 1,724.81 purchase point on April 7. The current buy zone stretches to 1,811.05.

CMG's stock is trending towards its all-time highest of 1,958.55, set in September 2021. Shares rose to 1,802.45 on Monday, before the results.

Chipotle has a 91 RS rating and its relative strength is at a 52-week high. CMG has an almost perfect 98 EPS rating. It has a 99 Composite Rating which is a combination of a number technical indicators to give a single easy-to read score.