Zacks Research Has Bearish Forecast for CHH Q1 Earnings

Choice Hotels International, Inc. (NYSE:CHH) – Zacks Research decreased their Q1 2026 earnings estimates for shares of Choice Hotels International in a report issued on Thursday, March 12th. Zacks Research analyst Team now forecasts that the company will earn $1.32 per share for the quarter, down from their prior estimate of $1.40. The consensus estimate for Choice Hotels International’s current full-year earnings is $7.07 per share. Zacks Research also issued estimates for Choice Hotels International’s Q2 2026 earnings at $1.95 EPS, Q3 2026 earnings at $2.18 EPS, Q4 2026 earnings at $1.61 EPS, FY2026 earnings at $7.06 EPS, Q1 2027 earnings at $1.43 EPS, Q2 2027 earnings at $2.20 EPS, Q3 2027 earnings at $2.22 EPS, Q4 2027 earnings at $1.88 EPS, FY2027 earnings at $7.72 EPS and FY2028 earnings at $8.17 EPS.

Choice Hotels International (NYSE:CHH) last announced its quarterly earnings data on Thursday, February 19th. The company reported $1.60 earnings per share for the quarter, beating analysts’ consensus estimates of $1.56 by $0.04. The business had revenue of $390.15 million for the quarter, compared to analyst estimates of $369.26 million. Choice Hotels International had a net margin of 23.17% and a return on equity of 541.07%. The company’s revenue was up .0% on a year-over-year basis. During the same period last year, the business earned $1.55 EPS. Choice Hotels International has set its FY 2026 guidance at 6.920-7.140 EPS.

A number of other analysts also recently issued reports on CHH. Argus reaffirmed a “hold” rating on shares of Choice Hotels International in a report on Tuesday, December 16th. Weiss Ratings raised Choice Hotels International from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Monday, February 9th. Susquehanna decreased their target price on Choice Hotels International from $140.00 to $95.00 and set a “neutral” rating for the company in a research note on Wednesday, November 26th. The Goldman Sachs Group upped their price target on Choice Hotels International from $90.00 to $100.00 and gave the company a “neutral” rating in a report on Tuesday, February 3rd. Finally, Robert W. Baird dropped their price target on shares of Choice Hotels International from $122.00 to $110.00 and set an “outperform” rating on the stock in a research note on Tuesday, November 18th. Two analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat.com, Choice Hotels International has an average rating of “Reduce” and a consensus target price of $111.36.

Choice Hotels International Stock Performance

NYSE:CHH opened at $95.48 on Friday. Choice Hotels International has a 12 month low of $84.04 and a 12 month high of $136.45. The company has a debt-to-equity ratio of 10.52, a current ratio of 0.87 and a quick ratio of 0.87. The firm has a market capitalization of $4.39 billion, a PE ratio of 12.06, a price-to-earnings-growth ratio of 4.26 and a beta of 0.75. The business’s fifty day moving average price is $105.42 and its 200 day moving average price is $102.02.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Kilter Group LLC purchased a new stake in Choice Hotels International in the second quarter valued at approximately $25,000. Eurizon Capital SGR S.p.A. purchased a new position in shares of Choice Hotels International during the fourth quarter worth approximately $27,000. Eagle Bay Advisors LLC acquired a new position in shares of Choice Hotels International in the 4th quarter valued at $28,000. Fifth Third Bancorp increased its holdings in shares of Choice Hotels International by 77.4% in the 4th quarter. Fifth Third Bancorp now owns 392 shares of the company’s stock valued at $37,000 after acquiring an additional 171 shares during the period. Finally, UMB Bank n.a. raised its position in Choice Hotels International by 6,416.7% in the 4th quarter. UMB Bank n.a. now owns 391 shares of the company’s stock valued at $37,000 after purchasing an additional 385 shares during the last quarter. Hedge funds and other institutional investors own 65.57% of the company’s stock.

Insider Activity at Choice Hotels International

In other news, SVP Simone Wu sold 8,080 shares of Choice Hotels International stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $101.56, for a total transaction of $820,604.80. Following the sale, the senior vice president owned 48,803 shares in the company, valued at approximately $4,956,432.68. The trade was a 14.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 23.78% of the company’s stock.

Choice Hotels International Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Wednesday, April 1st will be issued a dividend of $0.2875 per share. The ex-dividend date of this dividend is Wednesday, April 1st. This represents a $1.15 annualized dividend and a dividend yield of 1.2%. Choice Hotels International’s dividend payout ratio (DPR) is presently 14.52%.

More Choice Hotels International News

Here are the key news stories impacting Choice Hotels International this week:

• Positive Sentiment: Zacks raised FY2027 and FY2028 earnings outlooks (FY2027 to $7.72 from $7.53; FY2028 to $8.17) indicating stronger medium‑term profitability expectations, which supports upside to longer‑term valuation.
• Positive Sentiment: Zacks also increased several quarterly estimates (notably Q2 & Q3 2027 to $2.20 and $2.22, and Q3 2026 to $2.18, plus a modest lift to Q2 2026), signaling expectations for improving revenue/margin trends across 2026–27.
• Neutral Sentiment: Zacks published a full set of revised quarterly and yearly EPS projections (Q1–Q4 2026, FY2026, Q1–Q4 2027 and FY2027), leaving the FY2026 consensus roughly intact (~$7.06–7.07) — useful modeling detail but not a dramatic shift to the 2026 outlook.
• Negative Sentiment: Zacks trimmed some near‑term quarters: Q1 2026 was lowered materially (from $1.40 to $1.32) and Q4 2026 and Q1 2027 were nudged down slightly — a signal of near‑term pressure that could weigh on sentiment and short‑term results.
• Negative Sentiment: Morgan Stanley cut its price target for CHH to $83, which can exert additional downward pressure on the stock by lowering analyst‑driven valuation reference points. Morgan Stanley Price Target Cut

About Choice Hotels International

Choice Hotels International, Inc is a hospitality franchisor specializing in the development and support of lodging brands across the economy, midscale and upscale segments. Through a network of franchisees, Choice Hotels supplies proprietary reservation and distribution systems, comprehensive marketing programs, and operational support services. The company’s core activities include brand management, franchise development, and technology-driven revenue optimization tools designed to enhance guest acquisition and retention for its partners.

Founded in 1939 as Quality Courts United, the company rebranded to Choice Hotels International in 1982 to reflect its expanding brand portfolio and global ambitions.