Chipotle Investors Get Burnt On Q1 Earnings As Comparable Sales Fall Amid Slowdown In Consumer Spending

Chipotle Mexican Grill Inc CMG reported financial results for the first quarter after the market close on Wednesday. Here’s a look at the key details from the quarter.

Q1 Earnings: Chipotle reported first-quarter revenue of $2.9 billion, missing analyst estimates of $2.95 billion. The fast-casual restaurant chain company reported adjusted earnings of 29 cents per share, beating analyst estimates of 28 cents per share, according to Benzinga Pro.

Chipotle said total revenue increased 6.4% on a year-over-year basis, but comparable restaurant sales fell 0.4% year-over-year due to lower transactions of 2.3%. The total revenue growth was largely driven by new restaurant openings. Chipotle opened 57 new restaurants in the quarter, and 48 of those locations included a Chipotlane.

Digital sales represented 35.4% of food and beverage revenue. Restaurant level operating margin was 26.2% in the first quarter. Food, beverage and packaging costs came in at 29.2% of total revenue, up from 28.8% in the first quarter of 2024. Chipotle said the increase was primarily due to inflation and higher usage across several items, including avocados, dairy and chicken.

See Also: Chipotle Stock Faces Bearish Charts Despite Upbeat Q1 Estimates And Price Target Revisions

The company also repurchased $553.7 million of its stock during the first quarter. Chipotle had $874.7 million remaining under its share repurchase authorization as of March 31.

“While our first quarter results were impacted by several headwinds, including weather and a slowdown in consumer spending, our teams continue to make significant progress improving the execution in our restaurants, innovating our back of house, and building Chipotle into a global iconic brand,” said Scott Boatwright, CEO of Chipotle.

“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.”

Guidance: Chipotle expects full-year 2025 comparable restaurant sales growth in the low-single-digit range, down from prior guidance for growth in the low- to mid-single-digit range. The company continues to expect to open between 315 and 345 new restaurants in 2025 with more than 80% including a Chipotlane.

Chipotle executives will further discuss the quarter on a conference call with investors and analysts at 4:30 p.m. ET.

CMG Price Action: Chipotle shares were down approximately 20% year-to-date heading into Wednesday’s report. Shares were down 3.61% after-hours, trading at $46.34 at the time of publication Wednesday, according to Benzinga Pro.

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