Chipotle's Earnings and Revenue Fall Short of Expectations

Published 1 hours agoCMG

Chipotle's Earnings and Revenue Fall Short of Expectations

Chipotle Mexican Grill has reported its first-quarter earnings, revealing a miss on expectations with a $0.05 per-share shortfall. The company's revenue, despite growing by approximately 9% year-over-year to reach about $2.95 billion, also fell below analysts' estimates. This earnings report highlights a slowdown in revenue growth compared to previous quarters.

According to Insider Monkey, the revenue shortfall for Chipotle has been attributed to several factors, including pressure on same-store sales. Although the Q4 2024 metrics met market expectations, the anticipated results for Q1 2025 face scrutiny due to overarching macroeconomic pressures and potential impacts from tariff disruptions. Prior to the earnings disclosure, UBS maintained its Buy rating but lowered the price target to $65, reflecting short-term sales challenges while maintaining optimism about future growth opportunities.

Leading up to the earnings announcement, Chipotle's shares had already declined by over 20% year-to-date. This decline was influenced by broader concerns regarding consumer spending and operational issues facing the company. Despite these setbacks, analysts express long-term confidence in Chipotle's potential for unit expansion and margin improvement.

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