From Yahoo Finance: 2025-04-27 14:00:00

Chipotle Mexican Grill reported its first same-store sales decline since 2020, with traffic not recovering as expected. The stock is down over 18% this year. Sales fell 2% in January and remained flat in Q1, blaming weather and economic uncertainty for reduced customer visits.

Chipotle faces tough comparable-restaurant sales in Q2 and expects low single-digit same-store growth for 2025. Despite challenges, the company plans to drive traffic with an enhanced marketing plan. Revenue grew by 6% to $2.88 billion, with adjusted EPS at $0.29, beating analyst estimates.

Restaurant-level operating margins dropped to 26.2% due to rising costs. Chipotle remains attractive with strong margins and growth opportunities. It plans to expand in the U.S., Canada, U.K., Germany, and the Middle East. The stock trades at a forward P/E of 39 based on 2025 estimates.

Despite slowing consumer traffic, Chipotle’s long-term story remains intact. Investors can consider accumulating shares at current levels. The company sees room for growth in the U.S. and internationally. Chipotle’s long-term potential remains strong, with a focus on adding new locations and driving profitability.

Read more: Chipotle Turns Cautious on Consumer Sentiment. Is the Stock Still a Long-term Buy?