Zacks.com users have recently been watching Chipotle (CMG) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Bill Ackman is a well-known investor whose strategy centers on making concentrated bets in what he believes are high-quality businesses. The hedge fund he runs, Pershing Square Capital Management, has a solid track record over the past two decades.
Given Chipotle's (CMG -1.63%) recent stock performance, one has to wonder if it's still reeling from the sudden departure of former CEO Brian Niccol last summer. Eight months after Scott Boatwright became the company's new CEO, the stock is now down over 25% from its high.
After warning during its fourth-quarter conference call that 2025 was off to a tough start in January, fast-casual restaurant chain Chipotle Mexican Grill (CMG 4.84%) found that traffic never really recovered; it reported its first same-store sales decline since 2020, early in the COVID-19 pandemic. The stock largely shrugged off these disappointing results, although as of this writing it's still down more than 18% on the year.
Chipotle Mexican Grill's NYSE: CMG price action is down in Q2 2025 for several reasons, including a post-stock split letdown, a significant CEO transition, global macroeconomic woes, and a sluggish 2025 outlook. However, those factors do not offset the company's leadership position, quality management, fortress-like balance sheet, and substantial growth outlook.
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.