Chipotle Mexican Grill gave lackluster 2025 guidance late Tuesday after reporting largely inline earnings for the fourth quarter. Chipotle stock extended its decline below key levels on Wednesday.
A dozen analysts cut price targets on CMG stock after the Q4 report, FactSet shows. Four hiked.
Chipotle Earnings And Outlook
For Q4, Chipotle earnings rose 21% to 25 cents a share, a penny ahead of views. Revenue increased 13.1% to $2.845 billion, roughly in line with estimates. Same-store sales grew 5.4%, slightly below estimates for 5.7%, slowing both year on year and quarter over quarter.
For 2025, Chipotle on Tuesday guided comparable restaurant sales growth "in the low to mid-single digit range." Analysts were anticipating comp growth of 5.4% for the full year, FactSet shows.
Chipotle Stock, Restaurant Stocks
Chipotle stock slid 2.6% in Wednesday's stock market action. Shares slumped further below the 50-day and 200-day moving averages. CMG stock continues to work on a 66.74 buy point from a nine-week consolidation, still far below the entry.
Cava stock and Starbucks reversed higher on Wednesday, extended from recent earnings breakouts. That means shares are not in a proper buy range. EAT stock and Dutch Bros. are both far extended.
Restaurant retail stocks are generally acting well amid earnings. Food-delivery service DoorDash is on the IBD Leaderboard and Mediterranean food chain Cava is on the Leaders watchlist. Coffee shop operator Dutch Bros. is on the IBD 50 list of top growth stocks.
Last week, Chili's parent Brinker International and Starbucks gapped up on earnings. IBD featured Cava in a Stock of the Day column as well.
Late Tuesday, Chipotle said that food and beverage costs rose in Q4 due to "higher usage of ingredients" and "to a lesser extent, inflation across several items, including higher avocado and dairy costs." The cost increase was partially offset by higher menu prices, the company said.
President Donald Trump's Mexico tariffs threaten to raise already high avocado prices, though the U.S. has now put those tariffs on ice for a month.
Chipotle has also been dealing with California's minimum wage law, which raised labor costs.
Please follow Aparna Narayanan on X @IBD_Aparna for more coverage.
