Chipotle Mexican Grill (CMG) is expected to release its Q1 earnings report.

Consensus estimates call for EPS to rise 57% YoY to $8.95, sales to grow 16% to $2.34 billion, and comps of +8.6%.

McDonald's (MCD) Q1 earnings beat could be a good sign ahead of CMG's report.

Additionally, CMG may benefit from its fast-casual market and the potential for absorbing higher menu prices. Lower input costs, including dairy prices cooling and meat, poultry, fish, and produce prices lowering, could also boost margins.

CLIFF NOTES:

Consensus estimate for CMG's Q1 sales: $2.34 billion (up 16% YoY)
Consensus estimate for CMG's Q1 comps: +8.6%
CMG recently set 52-week highs and investors may take profits if there are any risks in Q1
McDonald's (MCD) Q1 earnings beat could bode well for CMG
CMG operates in a fast-casual market that allows for more leeway with menu prices
Lower input costs, including dairy prices cooling and lower meat, poultry, fish, and produce prices, could boost margins
CMG trades at a significant premium to some peers, including MCD, YUM, DPZ, QSR, and WEN.

TECHS:

CMG trades at 43x forward earnings, a significant premium compared to some of its peers, like MCD at 28x, YUM at 27x, DPZ at 25x, QSR at 23x, and WEN at 23x.

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Burrito (CMG)