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3d ago

Chipotle Lowers 2025 Sales Outlook After First Same-Store Sales Dip Since 2020

Q1 revenue fell short of expectations as cautious consumer spending and adverse weather impacted performance, while plans to expand into Mexico by 2026 were announced.

Chipotle reported quarterly earnings Wednesday, posting a 6.4% increase in quarterly revenue to $2.88 billion, which fell short of expectations.
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Overview

  • Chipotle reported Q1 2025 revenue of $2.88 billion, missing Wall Street's $2.95 billion forecast, though adjusted EPS slightly surpassed expectations at $0.29 per share.
  • Same-store sales declined 0.4% in the quarter, marking the first drop since Q2 2020, driven by a 2.3% decrease in transactions despite a 1.9% increase in average check size.
  • The company revised its full-year comparable sales growth projection to low-single digits, down from its previous low- to mid-single digits estimate.
  • CEO Scott Boatwright attributed the weaker performance to adverse weather, a late Easter holiday, and a slowdown in consumer spending, citing economic uncertainty as a key factor.
  • Chipotle confirmed a development deal to open its first location in Mexico by early 2026, signaling a strategic push for international expansion despite current challenges.