Chipotle misses revenue estimates, gives more cautious outlook as it sees ‘slowdown’ in spendingChipotle Mexican Grill on Wednesday reported weaker-than-expected quarterly revenue after its same-store sales declined for the first time since 2020.
Executives cited both a slowdown in consumer spending and adverse weather as two of the factors that dampened demand for its burritos and bowls.
The company also lowered the top end of its outlook for full-year same-store sales growth.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: 29 cents adjusted vs. 28 cents expected
- Revenue: $2.88 billion vs. $2.95 billion expected
Chipotle reported first-quarter net income of $386.6 million, or 28 cents per share, up from $359.3 million, or 26 cents per share, a year earlier.
Excluding stock-based compensation grants tied to its recent CEO transition, the company earned 29 cents per share.
Net sales rose 6.4% to $2.88 billion.
The chain’s same-store sales fell 0.4% during the quarter, short of the 1.7% growth projected by StreetAccount estimates. Restaurant transactions fell 2.3% and were only partially offset by a 1.9% increase in average check.
The company doesn’t expect traffic to its restaurants to grow until the second half of the year.
“I am confident that we have a strong plan to return to positive transaction comps by the second half of the year, and during these uncertain times, we will continue to invest in the things that make Chipotle a special brand – our people, culinary, value proposition, innovation and growth,” CEO Scott Boatwright said in a statement.
For the full year, Chipotle is now projecting same-store sales will grow by low single digits. Previously, it was forecasting same-store sales growth in the low- to mid-single digit range.
The company reiterated its plans to open between 315 and 345 new restaurants by the end of 2025.
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