Chipotle Mexican Grill (CMG) Q1 2025 earnings
Chipotle Q1 2025 Earnings: First Same-Store Sales Decline Since 2020
Key Financial Metrics
| Metric | Actual | Expected |
|---|---|---|
| Earnings Per Share (Adjusted) | 29 cents | 28 cents |
| Revenue | $2.88 billion | $2.95 billion |
| Same-Store Sales Growth | -0.4% | +1.7% (expected) |
Q1 2025 Performance Overview
Chipotle Mexican Grill (CMG) reported its first same-store sales decline since 2020 in Q1 2025, with revenue falling short of Wall Street expectations. The company’s performance was impacted by:
- Net sales increase of 6.4% to $2.88 billion
- Same-store sales decline of 0.4%
- Restaurant transactions down 2.3%
- Average check increase of 1.9%
Consumer Behavior and Market Conditions
Market Response
- Stock declined over 2% in after-hours trading
- Closed up 3.5% during regular trading hours
- Consumer spending slowdown observed from February
- Weather conditions impacted restaurant traffic
Operational Challenges and Strategy
Key Factors Affecting Performance
CEO Scott Boatwright highlighted several challenges:
- Economic uncertainty affecting consumer behavior
- Delayed seasonal uptick due to later Easter holiday
- Continued traffic slowdown into April
- Impact of new tariffs on operational costs
Financial Impact of Tariffs
Tariff Effects on Costs
- 0.5% ongoing increase in cost of sales
- 0.2% impact in Q2 due to existing inventory
- Aluminum tariffs affecting operations
- Imported avocado supply implications
Future Outlook and Growth Plans
2025 Projections and Initiatives
- Revised same-store sales growth forecast to low single digits
- 315-345 new restaurant openings planned for 2025
- Enhanced marketing strategy for summer season
- Focus on transaction growth in second half of year
CEO Boatwright remains confident in the company’s strategy, emphasizing continued investment in people, culinary innovation, and brand value proposition during uncertain economic times.
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