Chipotle's Stock Plunges 18% On Lowered Guidance
The stock of Chipotle Mexican Grill (CMG) is down 18% after the restaurant chain lowered its same-store sales guidance for a third consecutive quarter.
The company reported earnings per share (EPS) of $0.29 U.S., in line with Wall Street’s expectations, but short of the $3.03 billion U.S. consensus estimate.
Chipotle expects its full-year same-store sales to shrink by a low-single digit percentage in 2025, a significant change from earlier projections of low- to mid-single digit percentage growth.
- Traffic at Chipotle’s stores fell 0.8% in the latest quarter, the third consecutive quarter of declines.
- Management cited “consistent macroeconomic pressures” in the company’s earnings release.
Management said they are seeing “consistent macroeconomic pressures”
Author's summary: Chipotle's stock falls due to lowered guidance.