Chipotle Mexican Grill reported weaker-than-expected quarterly revenue and same-store sales declined for the first time since 2020, citing a slowdown in consumer spending and adverse weather. The burrito chain’s earnings per share and net sales rose, but same-store sales fell short of expectations.
The company attributed the decline to economic uncertainty, which led customers to pull back on spending, starting with February. CEO Scott Boatwright said traffic slowed due to concerns around the economy, and this slowdown has continued into April. The usual “burrito season” in spring was delayed, and summer months typically see slower sales as college students return home.
Chipotle lowered its full-year same-store sales outlook, projecting low single-digit growth. The company expects to continue investing in its brand, including marketing efforts to make it more visible and relevant. However, higher inflation due to tariffs on aluminum and other imported goods is expected to impact cost of sales.
The stock fell over 2% in extended trading after the announcement. Despite this, the company remains committed to opening between 315 and 345 new restaurants by the end of 2025.
Source: https://www.cnbc.com/2025/04/23/chipotle-mexican-grill-cmg-q1-2025-earnings.html