Chipotle Mexican Grill’s stock has risen 17% over the past year. The burrito chain announced Scott Boatwright as its permanent CEO in November. In the company’s latest quarterly earnings report, traffic to its restaurants continued to rise, helping it outpace the broader restaurant industry.
However, Chipotle disappointed investors with its same-store sales forecast for 2025 and commentary about weaker January traffic. Shares fell over 4% in extended trading. The company reported adjusted earnings per share of 25 cents, beating analyst expectations, but missed on same-store sales growth, coming in at 5.4%.
The burrito chain’s net sales climbed 13.1%, driven by higher transactions and a rising trend in traffic. However, sales softened at the end of December due to Christmas and New Year’s Day falling on Wednesdays. CFO Adam Rymer attributed this to weather conditions, including wildfires in Los Angeles, having a greater impact on traffic than last year.
For 2025, Chipotle expects same-store sales growth of low to mid single digit, lower than analyst expectations of 5.7%. The company’s international expansion plans continue, with plans to open between 315 and 345 new locations, more than 80% of which will have digital ordering capabilities.
Source: https://www.cnbc.com/2025/02/04/chipotle-mexican-grill-cmg-q4-2024-earnings.html