Chipotle (CMG) Shares Drop 13% on Mixed Q2 Report

by MarketNewsData

Chipotle executives acknowledged that Q2 traffic trends were weaker than expected, citing “consumer resistance to higher prices” and increased competition in value-driven dining. Management emphasized a renewed focus on value perception and said early Q3 trends are improving with new menu items and national marketing. They also reiterated long-term unit growth goals and digital innovation as key drivers going forward.

Key Financials – Q2 2025 (vs. estimates)

  • Adjusted EPS: $0.33 (beat)

  • Revenue: $3.10B (+3.0% YoY, missed est. $3.11B)

  • Comparable Sales: –4.0%
     ↳ Customer traffic: –4.9%

  • Operating Margin: 18.2% (down from 19.7%)

  • Restaurant-level Margin: 27.4% (down from 28.9%)

Management Commentary
COO Scott Boatwright pointed to improving trends heading into summer, with new marketing efforts and easier YoY comparisons expected to lift traffic. But higher food costs, especially beef and chicken, and lower visit frequency undercut gains from menu price increases.

Stock Reaction – July 24, 2025

  • Open: $46.20

  • High: $47.02

  • Low: $45.13

  • Close: $45.74

  • Change: –$7.04 (–13.34%)

  • Volume: 77.86M (heavy selling)

Outlook and Context
Chipotle’s modest topline growth and margin compression contrast with stronger performance from other fast-casual peers that have shown more resilient traffic trends. This report highlights rising sensitivity to pricing and inflation across discretionary dining.

Investors will look for improvement in Q3, especially as seasonal promotions and pricing normalize.

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