Chipotle Mexican Grill, Inc. (CMG)
How to trade Chipotle (CMG) stock after Q4 earnings decline?
Chipotle Mexican Grill Inc (NYSE: CMG) has inched down in recent sessions after its management warned that same-store sales were expected to see some weakness in 2025. The chain of fast-casual restaurants guided for up to 5% annualized growth in comparable sales this year, versus Street at a higher 5.4%.
Why Tariffs on Mexico May Hurt Chipotle Less Than You Think
Close Key Takeaways Chipotle gets half its avocados from outside Mexico, according to CEO Scott Boatwright; meanwhile, the U.S. imports more than 90% of its avocados, and Mexico accounts for nearly 90% of those imports, Department of Agriculture data shows.Chipotle's diverse supply chain could help it weather tariffs on imports from Mexico, which the Trump administration has threatened to implement early next month.Chipotle estimates its expenses would increase by about 0.6% this year if the proposed tariffs were enacted. Chipotle Mexican Grill (CMG) is dishing out guacamole that relies on the nation that inspired its menu less than you might think. “Today, we source from both Colombia, Peru, as well as the Dominican Republic. Only about 50% of our avocado supply today [is] coming out of Mexico,” Chipotle Chief Executive Officer Scott Boatwright said Tuesday on the company's earnings call, a transcript of which was made available by AlphaSense. “Our supply chain team has done a remarkable job over the last couple of years with vendor diversification.” The move may help Chipotle weather tariffs on imports from Mexico, which accounted for 89% of all fresh avocados shipped to the U.S. in 2023, according to the U.S. Department of Agriculture. Nearly all the avocados imported by the country from elsewhere came from Peru, the Dominican Republic, or Colombia. Avocado consumption in the U.S. has ballooned since the early 2000s, as has the country's dependence on international producers. As recently as 2005, more than half of fresh avocados consumed in the U.S. were grown domestically. In 2023, that figure was just 8.1%, the lowest on record, according to Department of Agriculture data. Trump's Tariffs Would Raise Chipotle Costs Slightly The Trump administration added a 10% tariff on Chinese imports this week and may impose a 25% import tax on items from Mexico and Canada in early March. Chief Financial Officer Adam Rymer on Tuesday said Chipotle spends a sliver of its total costs on ingredients from China, Mexico, and Canada. The avocados, tomatoes, limes, and peppers that Chipotle sources from Mexico account for about 2% of its cost of sales, while Chinese and Canadian exports make up an additional roughly 0.5% of input costs. If enacted in full, the tariffs could increase Chipotle's expenses by about 0.6% this year, CEO Boatwright said. Researchers have warned that American consumers would likely feel the pain of the tariffs. Economists at Yale University estimate the plan could raise the cost of living by 0.7% and cost American households an average of $1,250 annually. Do you have a news tip for Investopedia reporters? Please email us at [email protected]
Chipotle is off to a ‘rough' start in 2025. Some analysts think it will get better.
Chipotle's outlook didn't factor in President Trump's new tariffs. Analysts noted that it also didn't factor in any gains for potential new menu items — like honey chicken.
Chipotle won't raise prices quickly due to tariffs: CFO says
Chipotle (CMG) reported fiscal fourth quarter earnings that met analyst expectations for both revenue and profit. However, the company's shares fell as its same-store sales growth outlook fell short of Wall Street projections.
Chipotle: Tariff Fears Overblown, Dips Are Tasty For Long-Term Investors
Chipotle Mexican Grill, Inc.'s consistent sales growth and strong comparable sales, up 5.4% in Q4 and 7.4% for the year, support long-term investment. Despite short-term risks from tariffs and ingredient costs, Chipotle's strategic price increases and cost controls bolster its financial health. The company's aggressive expansion plans, including 315-345 new stores and significant share repurchases, signal confidence in sustained growth.
Chipotle adds hundreds of new restaurants in record-breaking year
Chipotle—one of the original and most influential fast-casual spots in the country—just hit a major milestone. In 2024, they opened 304 new restaurants, marking the highest number of openings in a single year in their franchise history, according to a Tuesday earnings call.
Chipotle Mexican Grill's Stock Gets Burned For Mixed Q4; Sales Slowdown To Continue, Analysts Say
Chipotle Mexican Grill, Inc. CMG shares are down Wednesday, after the company announced a revenue miss in the fourth quarter.
Chipotle Stock Slips on Soft Sales, Potential Impact of Threatened Tariffs
Shares of Chipotle Mexican Grill (CMG) slipped Wednesday, a day after the Mexican fast-casual restaurant chain missed revenue estimates as it tried to address investor concerns about possible tariffs on imports from Mexico.
Chipotle Q4 Earnings Top Estimates, Revenues Lag, Stock Slips 5%
CMG's fourth-quarter 2024 comps benefit from higher transactions and a rise in average checks.
Chipotle: Good Portions Keep Diners Coming Back Amid Rising Prices
Consumers are willing to pay higher prices at fast-casual restaurants if they get good portions, quality ingredients and value for the money, Chipotle executives said Tuesday (Feb. 4). Reporting the company's results for the fourth quarter, executives said Chipotle's food, beverage and packaging costs rose to 30.
Chipotle Mexican Grill, Inc. (CMG) Q4 2024 Earnings Call Transcript
Chipotle Mexican Grill, Inc. (NYSE:CMG ) Q4 2024 Earnings Conference Call February 4, 2024 4:30 PM ET Corporate Participants Cindy Olsen - Head of Investor Relations and Strategy Scott Boatwright - Chief Executive Officer Adam Rymer - Chief Financial Officer Conference Call Participants Sara Senatore - Bank of America David Tarantino - Baird David Palmer - Evercore ISI Lauren Silberman - Deutsche Bank Dennis Geiger - UBS Christine Zhao - Goldman Sachs John Ivankoe - JPMorgan Andrew Charles - TD Cowen Danilo Gargiulo - Bernstein Jon Tower - Citi Brian Harbour - Morgan Stanley Sharon Zackfia - William Blair Brian Bittner - Oppenheimer & Co. Zach Fadem - Wells Fargo Operator Good day and welcome to the Chipotle Mexican Grill Fourth Quarter 2024 Results Conference Call. All participants will be in listen-only mode.
Chipotle CEO Scott Boatwright goes one-on-one with Jim Cramer
Chipotle CEO Scott Boatwright joins 'Mad Money' host Jim Cramer to talk quarterly results, footprint expansion, the impact of tariffs and more.
