From Yahoo Finance: 2025-04-26 09:16:00

Chipotle Mexican Grill reported Q1 adjusted EPS of $0.29, beating estimates, but missed revenue expectations at $2.9 billion. Shares have dropped 18% in 2025 and are down 28% from 2024’s high. Consumer confidence is low, impacting Chipotle’s same-store sales which declined by 0.4% in Q1.

CEO Boatwright noted that consumer uncertainty affected spending habits in February, with Chipotle expecting low single-digit sales growth for the year. Despite challenges, Chipotle’s value proposition with affordable menu items like chicken burritos could help in a recessionary scenario.

Chipotle’s revenue increased by 102% from 2019 to 2024, driven by store sales growth and expansion. With 3,781 locations currently, Chipotle aims to open 273 more this year and expand internationally. The company targets having 7,000 North American stores and $28 billion in annual revenue.

While Chipotle’s stock is trading lower, its forward P/E ratio has improved to 39 from 52 a year ago. Dollar-cost averaging into Chipotle for the long term could be a wise strategy given its historical financial performance. The company’s growth potential remains strong despite short-term challenges.

Read more: Should You Buy Chipotle Stock Right Now and Hold It for the Next 20 Years?