What's Going On With Chipotle Mexican Grill Shares Thursday?

Chipotle Mexican Grill, Inc. CMG shares are trading on volatility Thursday. The company reported first-quarter earnings after the market closed on Wednesday.

What To Know: The company reported adjusted earnings per share of 29 cents, beating analysts’ estimate of 28 cents. In addition, the company reported sales of $2.90 billion, missing analysts’ estimate of $2.95 billion, but representing a 6.4% year-over-year increase.

Chipotle attributed the revenue growth to new restaurant openings. The company announced comparable restaurant sales fell 0.4% year-over-year due to lower transactions of 2.3%.

During the first quarter, the company repurchased approximately $553.7 million worth of its stock. It has $847.7 million remaining under its current buyback authorization.

“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, 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.”

2025 Outlook: It sees full year comparable restaurant sales growth in the low single digit range. Furthermore, Chipotle expects 315 to 345 new company-owned restaurant openings.

Analyst Changes: Following the earnings report, multiple analysts lowered their price targets.

• Keybanc analyst Eric Gonzalez maintained an Overweight rating on Chipotle and lowered the price target from $60 to $58.
• Evercore ISI Group analyst David Palmer maintained an Outperform rating on Chipotle and lowered the price target from $64 to $57.
• Wells Fargo analyst Zachary Fadem maintained an Overweight rating on Chipotle and lowered the price target from $60 to $55.

See Also: French Drugmaker Sanofi Clocks 20% Q1 Profit Growth, Forecasts Strong Rebound In Annual Profit

CMG Price Action: At the time of writing, Chipotle stock is trading 0.66% higher at $49.07, according to data from Benzinga Pro.

Image: via Shutterstock