Chipotle Mexican Grill (CMG) Q1 2025 earnings

Chipotle Mexican Grill on Wednesday reported weaker-than-expected quarterly revenue after its same-store sales declined for the first time since 2020.

Executives cited both a slowdown in consumer spending and adverse weather as two of the factors that dampened demand for its burritos and bowls.

The company also lowered the top end of its outlook for full-year same-store sales growth.

Chipotle shares fell more than 3% in extended trading. The stock closed up 3.5% earlier on Wednesday.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Earnings per share: 29 cents adjusted vs. 28 cents expected
• Revenue: $2.88 billion vs. $2.95 billion expected

Net sales rose 6.4% to $2.88 billion.

The chain’s same-store sales fell 0.4% during the quarter, short of the 1.7% growth projected by StreetAccount estimates. Restaurant transactions fell 2.3% and were only partially offset by a 1.9% increase in average check.

Customers started pulling back their spending in February because of economic uncertainty, CEO Scott Boatwright told analysts on the company’s conference call.

“We could see this in our visitation study, where saving money because of concerns around the economy was the overwhelming reason consumers were reducing the frequency of restaurant visits,” he said, adding that the traffic slowdown has continued into April.

The company doesn’t expect traffic to its restaurants to grow until the second half of the year.

“I am confident that we have a strong plan to return to positive transaction comps by the second half of the year, and during these uncertain times, we will continue to invest in the things that make Chipotle a special brand – our people, culinary, value proposition, innovation and growth,” Boatwright said in a statement.

For the full year, Chipotle is now projecting same-store sales will grow by low single digits. Previously, it was forecasting same-store sales growth in the low- to mid-single digit range.

“Looking forward, our marketing team has an enhanced plan for this summer and the remainder of the year to make Chipotle more visible, more relevant and more loved,” Boatwright said.

The company reiterated its plans to open between 315 and 345 new restaurants by the end of 2025.

Chipotle reported first-quarter net income of $386.6 million, or 28 cents per share, up from $359.3 million, or 26 cents per share, a year earlier.

Excluding stock-based compensation grants tied to its recent CEO transition, the company earned 29 cents per share.