Chipotle Stock Plunges 10.19% on Earnings Miss

Generated by AI AgentAinvest Pre-Market Radar
Thursday, Jul 24, 2025 4:44 am ET1min read
Aime RobotAime Summary

- Chipotle's stock fell 10.19% pre-market on July 24, 2025, due to weak Q2 earnings and revised guidance.

- The company reported 4% lower comparable sales driven by 4.9% fewer transactions, despite 61 new locations.

- CEO Scott Boatwright cited summer marketing efforts as potential turnaround drivers amid investor skepticism.

- Operating margin dropped to 18.2% as cost inflation offset menu price hikes and flat full-year sales guidance.

Chipotle Mexican Grill's stock experienced a significant drop of 10.19% in pre-market trading on July 24, 2025, reflecting investor concerns over the company's recent financial performance and outlook.

Chipotle's second-quarter earnings report revealed a 4% decline in comparable-restaurant sales, missing revenue expectations. The company attributed this drop to a 4.9% decrease in transactions, despite opening 61 new restaurants. This marks the second consecutive quarter where

has missed expectations and lowered its full-year outlook.

CEO Scott Boatwright highlighted the company's summer marketing initiatives as a potential driver for improvement in the second half of the year. However, investors remain cautious, given the two quarters of weak results and the company's revised guidance for roughly flat comparable-restaurant sales for the full year.

The negative impacts of lower sales volumes and cost inflation for some ingredients were partially offset by menu price increases. Nevertheless, the company's operating margin contracted by 1.5 percentage points to 18.2%, and adjusted earnings per share were slightly down.

Comments



Add a public comment...
No comments

No comments yet