Chipotle reported a Q1 2025 revenue of $2.88 billion, falling short of analyst forecasts by about 3.4%. While overall sales saw a 6% uptick to $2.9 billion, this wasn't enough to meet projections. This marks a significant quarter as Chipotle encountered its first decline in same-store sales since 2020, with a 0.4% drop, contrary to the anticipated 1.2% increase.
Key factors cited for the revenue miss include a slowdown in consumer spending and adverse weather conditions, as reported by Insider Monkey. The burrito chain has also revised its 2025 guidance, now expecting same-store sales growth in the low single-digit range, down from prior estimates of low to mid-single-digit growth. Tariffs leading to higher inflation, impacting their avocado supply, add to the challenges faced by Chipotle.
In response to these hurdles, Chipotle is set on opening between 315 and 345 new restaurants by the end of 2025, aiming to bolster growth despite current headwinds. The company is also placing emphasis on enhanced marketing strategies to sustain its market presence and drive future sales, while maintaining optimism about its long-term growth potential.