If Chipotle Mexican Grill, Inc. CMG is preparing to announce third-quarter results after market close on Tuesday. Investors and analysts are closely watching the company’s performance amid recent robust growth and significant leadership transition.

Chipotle exceeded expectations in the second quarter when it posted impressive revenue and earnings growth, beating consensus estimates with revenue of $2.97 billion and adjusted earnings of 34 cents per share.

This marked the fourth consecutive quarter in which Chipotle exceeded both top and bottom expectations, underscoring the company’s strong position in the fast-casual dining market.

What you need to know: In the second quarter, Chipotle saw an 18.2% year-over-year sales increase, supported by an 11.1% increase in comparable restaurant sales and transaction growth of more than 8%. Key drivers included popular menu offerings, such as the temporary return of Chicken Al Pastor, and improved operational efficiency initiatives aimed at improving throughput.

Chipotle’s operating margin rose to 19.7%, compared to 17.2% a year earlier. Digital sales continued to play a central role, accounting for 35.3% of total food and beverage sales – a testament to Chipotle’s investments in technology and online ordering platforms that streamline customer experiences and increase transaction volume.

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The company, meanwhile, repurchased $151.4 million of shares in the second quarter, a sign of confidence in future growth, and has retained a substantial $647.7 million under its share repurchase approval, potentially boosting can indicate earnings per share.

What to pay attention to: Looking ahead, the third quarter earnings report will be the first since the CEO Brian Niccol announced his departure. Niccol led Chipotle through a period of transformation beginning in 2018 and was instrumental in revitalizing the Chipotle brand, expanding its menu and accelerating its digital transformation, which has been critical to the company’s recent growth.

Chipotle’s board appointed him in his place Scott Boat Writerthe company’s chief operating officer, as interim CEO. Boatwright has been with Chipotle since 2017 and is recognized for his operational expertise and role in executing Chipotle’s turnaround strategy.

As third-quarter results approach, all eyes are on Chipotle’s ability to continue its growth trajectory and adapt to the recent leadership change.

With strong sales momentum, digital engagement and a roadmap for expansion, the company appears well positioned. However, investors will be on the lookout for any impact the leadership transition may have on Chipotle’s strategic direction.

Also read: From Chipotle to Starbucks: Brian Niccol’s $113 Million Pay Package and Its Impact on the Coffee Chain

An investor or trader’s decision to buy or sell a stock is unique because of their time horizon and risk tolerance. Many typical investors evaluate the earnings growth and valuation of a particular stock before making a decision.

For example, for Chipotle Mexican Grill, you’ll notice that earnings grew 6.25% in the last quarter. As an investor, you want to decide if that’s better or worse than what you’d like to see among the stocks in your portfolio.

On the valuation side, Chipotle Mexican Grill’s price-to-earnings ratio — a measure of how much an investor pays for the company’s earnings — is expected to grow 26.4% in the current quarter compared to last year. That places it below peers McDonald’s, Starbucks and Yum Brands in its sector. You have to decide whether that makes it more or less attractive, based on how you think the company will perform over time.

There are many different valuation metrics that can help you make a decision. Find more information on Chipotle Mexican Grill’s quotes page, or if you want to dive deeper into an advanced program, try Benzinga PRO for free.

CMG price promotion: Chipotle Mexican Grill is up 2.56% to $60.96 and has a 52-week high of $69.26 and a 52-week low of $37.49.

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