CMG's first-quarter 2025 comps are hurt by lower transactions. Also, unfavorable weather conditions and reduced consumer spending add to the downside.
Chipotle Mexican Grill, Inc. (NYSE:CMG ) Q1 2025 Earnings Conference Call April 23, 2025 4:30 PM ET Company Participants Cindy Olsen - Head of Investor Relations and Strategy Scott Boatwright - Chief Executive Officer Adam Rymer - Chief Financial Officer Conference Call Participants Andrew Charles - TD Cowen Sara Senatore - Bank of America David Tarantino - Robert W. Baird & Co. David Palmer - Evercore ISI Sharon Zackfia - William Blair & Company Brian Harbour - Morgan Stanley Dennis Geiger - UBS Gregory Francfort - Guggenheim Securities Christine Cho - Goldman Sachs Group, Inc. Lauren Silberman - Deutsche Bank AG Jon Tower - Citigroup Inc. Operator Good day, and welcome to the Chipotle Mexican Grill First Quarter 2025 Conference Call.
While the top- and bottom-line numbers for Chipotle (CMG) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Chipotle Mexican Grill (CMG) came out with quarterly earnings of $0.29 per share, beating the Zacks Consensus Estimate of $0.28 per share. This compares to earnings of $0.27 per share a year ago.
While Chipotle has thus far benefited from menu innovation and optimizing kitchen operations, the company could face some impact from import tariffs on goods such as avocados and beef.
Chipotle (CMG) reported first-quarter revenue that missed Wall Street's expectations and lowered its full-year sales outlook, sending shares lower in extended trading Wednesday.
Chipotle Mexican Grill Inc. late Wednesday reported a drop in same-restaurant sales and tweaked lower its same-restaurant guidance for the year, saying its quarterly results took a hit from bad weather and slower consumer spending.
Chipotle is expected to report same-store sales growth of 1.7%, according to StreetAccount estimates. Weather and the Los Angeles wildfires weighed on the company's sales in January.
Today, we will consider some lessons from the success of Chipotle's stock over the years. We will then consider its margins and growth runway, both in North America and internationally. With all of these ideas in mind, I will share a valuation model.
The Investment Committee give you The Setup on some key names reporting this week.
Chipotle's stock has declined around 20% over the past year, driven by decelerating same-store sales growth and increasing competition from companies like Sweetgreen and CAVA. The company's high forward P/E ratio of 37, a 173% premium to the sector median, suggests it is overpriced given its current performance and outlook. Trade war impacts, particularly on avocado imports, are expected to further strain Chipotle's margins, which are already pressured by high food and labor costs.
At a time when many fast-casual chains are struggling to get customers in the door, and rethinking their next moves both at home and internationally due to Trump's trade wars, Chipotle Mexican Grill is expanding.