Chipotle's Q1 Revenue Rises 6.4% but Misses Expectations
1min read Chipotle reported a 6.4% year-over-year increase in revenue for the first quarter, reaching $2.9 billion. This figure fell short of analysts' expectations of $2.95 billion. The company's earnings grew by 7.4% to $0.29 per share, surpassing the anticipated $0.28 per share. Compared to the 24% earnings growth and 15% sales growth seen in the four quarters of 2024, these numbers appear lackluster. Due to a decline in transaction volume, the same-store sales for the first quarter of 2025 decreased by 0.4% year-over-year, starkly contrasting with the 7.4% growth observed throughout 2024.
Despite facing unfavorable conditions such as adverse weather and a slowdown in consumer spending, Chief Executive Officer Scott Boatwright remains optimistic about the company's ability to return to positive growth in the second half of the year. He anticipates that the same-store sales for the full year of 2025 will achieve low single-digit growth. The persistent issue of inflation has led consumers to reduce their dining out, putting pressure on the overall restaurant industry. However, Chipotle's performance has been better than its peers, thanks to its loyal customer base. The company currently operates over 3,700 restaurants and plans to open between 315 and 345 new locations this year. While most of Chipotle's restaurants are in the United States, the Mexican fast-casual chain has been actively expanding into international markets.
