Zacks Research Has Negative Outlook for CHH Q1 Earnings

Choice Hotels International, Inc. (NYSE:CHH) – Analysts at Zacks Research lowered their Q1 2026 earnings estimates for Choice Hotels International in a research note issued on Thursday, March 12th. Zacks Research analyst Team now forecasts that the company will post earnings of $1.32 per share for the quarter, down from their previous forecast 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.

CHH has been the topic of a number of other research reports. Weiss Ratings upgraded Choice Hotels International from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Monday, February 9th. Robert W. Baird reduced their price objective on Choice Hotels International from $122.00 to $110.00 and set an “outperform” rating on the stock in a research report on Tuesday, November 18th. JPMorgan Chase & Co. raised their price objective on Choice Hotels International from $95.00 to $102.00 and gave the company a “neutral” rating in a report on Tuesday, February 3rd. Wells Fargo & Company boosted their target price on Choice Hotels International from $91.00 to $110.00 and gave the stock an “underweight” rating in a research report on Friday, February 20th. Finally, Barclays upped their target price on Choice Hotels International from $98.00 to $101.00 and gave the stock an “underweight” rating in a research note on Friday, February 20th. Two equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Reduce” and an average price target of $111.36.

Choice Hotels International Stock Down 2.4%

Shares of NYSE:CHH opened at $95.84 on Friday. The firm has a market capitalization of $4.41 billion, a PE ratio of 12.10, a price-to-earnings-growth ratio of 4.36 and a beta of 0.75. The company has a debt-to-equity ratio of 10.52, a quick ratio of 0.87 and a current ratio of 0.87. Choice Hotels International has a 52-week low of $84.04 and a 52-week high of $136.45. The firm has a fifty day moving average of $105.43 and a 200 day moving average of $102.19.

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

Choice Hotels International Dividend Announcement

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

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 value of $820,604.80. Following the transaction, 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 filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 23.78% of the company’s stock.

Hedge Funds Weigh In On Choice Hotels International

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Alps Advisors Inc. boosted its position in Choice Hotels International by 42.4% during the 3rd quarter. Alps Advisors Inc. now owns 40,577 shares of the company’s stock valued at $4,338,000 after buying an additional 12,082 shares during the period. Jump Financial LLC increased its position in shares of Choice Hotels International by 99.2% in the second quarter. Jump Financial LLC now owns 53,980 shares of the company’s stock valued at $6,849,000 after acquiring an additional 26,880 shares during the period. Squarepoint Ops LLC purchased a new position in shares of Choice Hotels International in the second quarter valued at about $5,020,000. JPMorgan Chase & Co. raised its stake in shares of Choice Hotels International by 1.1% during the second quarter. JPMorgan Chase & Co. now owns 403,720 shares of the company’s stock valued at $51,224,000 after acquiring an additional 4,425 shares during the last quarter. Finally, Rock Creek Group LP raised its stake in shares of Choice Hotels International by 52.3% during the second quarter. Rock Creek Group LP now owns 811,579 shares of the company’s stock valued at $102,973,000 after acquiring an additional 278,715 shares during the last quarter. 65.57% of the stock is currently owned by institutional investors.

Key Stories Impacting Choice Hotels International

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

• Positive Sentiment: Zacks raised FY2027 and FY2028 EPS outlooks (FY2027 to $7.72 from $7.53; FY2028 to $8.17), signaling improved medium?term earnings visibility and support for longer?term valuation upside.
• Positive Sentiment: Zacks bumped several quarterly estimates (examples: Q2 2026 to $1.95, Q3 2026 to $2.18, Q2 2027 to $2.20, Q3 2027 to $2.22, Q4 2027 to $1.88), suggesting stronger franchise performance and fee/royalty flows than previously modeled.
• Neutral Sentiment: The firm’s consensus FY2026 view remains around ~$7.06–7.07 EPS after Zacks’ adjustments — a small net change that keeps full?year expectations close to street estimates.
• Negative Sentiment: Zacks cut several near?term estimates: Q1 2026 was lowered materially (to $1.32 from $1.40) and Q4 2026 was trimmed (to $1.61 from $1.65), and FY2026 was nudged down (to $7.06 from $7.11) — all of which can pressure near?term sentiment and guidance confidence.
• Negative Sentiment: Morgan Stanley reduced its price target to $83, which may prompt additional selling or re?rating by investors reliant on analyst target guidance. Morgan Stanley Lowers CHH Price Target to $83.00

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.