- Chipotle Mexican Grill’s (CMG) stock fell 2.47% to $47.55 in after-hours trading after reporting $2.88 billion in revenue, missing Wall Street’s $2.95 billion forecast, with same-store sales declining 0.4%, the first drop since 2020.
- Despite a 2.3% decrease in restaurant transactions, adjusted earnings per share of 29 cents slightly beat the 28 cents expected, with net income rising to $386.6 million from $359.3 million year-over-year.
- CEO Scott Boatwright cited adverse weather and reduced consumer spending as challenges but expressed confidence in achieving positive transaction growth by the second half of 2025 through operational and brand-building initiatives.
Chipotle Mexican Grill (CMG) faced a challenging first quarter in 2025, with its stock declining 2.47% to $47.55 in after-hours trading on Wednesday, driven by weaker-than-expected revenue and a rare dip in same-store sales. The company reported net sales of $2.88 billion, up 6.4% year-over-year but falling short of Wall Street’s $2.95 billion forecast. Same-store sales dropped 0.4%, marking the first decline since 2020. This underperformance stemmed from a 2.3% decrease in restaurant transactions, only partially mitigated by a 1.9% rise in average check. Executives attributed the softness to adverse weather and a broader slowdown in consumer spending, which curbed demand for Chipotle’s burritos and bowls. The company also trimmed the upper end of its full-year same-store sales growth outlook, signaling caution amid ongoing economic pressures.
Despite the revenue shortfall, Chipotle’s adjusted earnings per share reached 29 cents, slightly surpassing the 28 cents anticipated by analysts. Net income for the quarter rose to $386.6 million, or $0.28 per diluted share, compared to $359.3 million, or $0.262 per diluted share, in the first quarter of 2024. Adjusted net income was $396.8 million, or $0.29 per adjusted diluted share, up from $369.3 million, or $0.272 per adjusted diluted share, a year earlier. These figures reflect Chipotle’s ability to maintain profitability through operational efficiencies, even in a tough demand environment. Chief Executive Officer Scott Boatwright expressed confidence in a rebound, emphasizing ongoing improvements in restaurant execution, back-of-house innovation, and brand-building efforts. He highlighted plans to restore positive transaction growth by the second half of 2025, leveraging Chipotle’s strengths in culinary innovation, employee development, and value proposition. Earlier in the day, the stock had gained 3.52% during regular trading, indicating market optimism prior to the earnings release. While near-term headwinds persist, Chipotle’s strategic focus on operational excellence and brand equity positions it to navigate economic uncertainties and sustain its long-term growth trajectory in the competitive fast-casual dining sector.
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