Chipotle earnings: Stock hits all-time high but questions arise about how long growth will last

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Chipotle is scheduled to report earnings after the bell Tuesday ... The stock is up more than 72% for 2019 so far after a yearslong struggle to recover from illness outbreaks in 2015

Chipotle Mexican Grill Inc. is scheduled to report second-quarter earnings after the closing bell on Tuesday and while analysts are bullish about this quarter, they’re starting to question just how long Chipotle’s hot streak will last.

“The way we see the shares here is that the debate about whether the brand can recover from food safety issues in an environment of increased competition is over, and the stock performance now turns on the whether the rate of recovery can exceed expectations currently factored into estimates and valuation,” wrote John Zolidis, president of Quo Vadis Capital.“[T]he company will soon start lapping its own improvements and one-time structural changes such as closing underperforming locations.

Revenue: FactSet and Estimize are guiding for revenue of $1.41 billion, up from $1.27 billion last year. Stock price: Chipotle shares have gained nearly 6% over the past three months, outpacing both the S&P 500 index SPX, +0.28% , which is up 2.7%, and the Dow Jones Industrial Average DJIA, +0.07% , up 2.5%.Besides the illness issues, Chipotle stumbled out the gate with the launch of queso.

See: As Beyond Meat soars, Conagra sees $30 billion opportunity in Gardein plant-based meat alternativesWedbush analysts maintained their neutral stock rating but moved their price target to $750 from $700 based on growth expectations for same-store sales and margins.

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