Latest news with #ChipotleHoneyChicken
Globe and Mail
24-04-2025
- Business
- Globe and Mail
Chipotle Warns of Slower Sales, Is CMG Stock in Trouble?
Chipotle Mexican Grill (CMG) has hit a rough patch. Since the beginning of the year, shares of this popular fast-casual restaurant chain have fallen roughly 17%, and its first-quarter earnings report only deepened investor concerns. Despite some bright spots in the company's performance, a mix of macroeconomic pressures, shifting consumer behavior, and muted forward guidance have raised questions about the short-term outlook for CMG stock. CMG's Q1 Earnings: A Mixed Bag In Q1, Chipotle's total revenue increased 6.4% year-over-year to $2.9 billion. However, its top line missed Wall Street estimates. Same-store sales, a key performance metric for the restaurant industry, fell 0.4%, a rare stumble for a company known for steady growth. Digital orders remained a major contributor, making up 35.4% of total sales. But rising costs took a toll: Eestaurant-level operating margin fell to 26.2%, down 130 basis points from last year. Adjusted earnings per share (EPS) rose 7% to $0.29, narrowly beating expectations. Still, it wasn't enough to calm worries over declining customer traffic and waning demand. What's Behind the Weak Performance? Chipotle's management cited several factors for the slowdown. Bad weather and a pullback in consumer spending — particularly from February onward — dampened results. Shoppers, facing persistent inflation and uncertainty about the economy, started tightening their wallets — a trend that has hit Chipotle just as it is preparing to lap tough comparisons from the previous year. April showed modest improvement, helped in part by the popularity of the limited-time Chipotle Honey Chicken. Still, the company faces a tough road ahead. In the second quarter, Chipotle is up against one of its strongest quarters from 2024, which featured an 11.2% comp growth, including high-teens growth in April alone. Moreover, Easter's earlier timing this year created a 100 basis point headwind, and removing some pricing benefits will shave another 90 basis points from the top line. Management now expects same-store sales for the full year to grow in the low single digits, down from earlier low- to mid-single-digit growth forecasts. Transaction volumes will likely return to positive territory in the second half of the year, but until then, investors may need to brace for further volatility. Chipotle's Strategic Moves to Regain Momentum Despite the near-term challenges, Chipotle is set to ramp up its marketing efforts beginning in May, with plans to push heavily across digital and social media platforms. It's also aiming to drive traffic with menu innovation, particularly around new sides and dips, and will lean more into its rewards platform to reach specific customer groups. These efforts could help Chipotle regain some lost momentum. Another avenue for potential growth lies in catering. Currently, the business is a small contributor, accounting for just 1.5% of total sales. Chipotle sees significant room to expand this segment. A catering pilot will launch this fall in one of its U.S. subregions, featuring upgraded equipment, additional storage, and improved technology to better handle demand and logistics. If successful, this could open a new revenue stream with long-term upside. Geographic expansion remains a key growth strategy for Chipotle. In the first quarter alone, it opened 57 new restaurants, including locations in Canada. The company remains on track to open 315 to 345 restaurants in 2025, with 80% featuring Chipotlane — its drive-thru digital order pickup format. Canadian expansion continues at a strong pace as well, with 15 to 20 openings planned, setting another record. While Chipotle is growing its restaurant base, its unit economics are strong, supporting its long-term expansion goals. Valuation Remains a Concern CMG stock's valuation remains a concern. Even after the recent selloff, it trades at a forward price-earnings ratio of 37.45x — an elevated figure that reflects high expectations for future growth. That premium could be hard to justify amid economic uncertainty and inflationary pressure in the near term. Bottom Line Despite macroeconomic headwinds and valuation concerns, Wall Street isn't sounding the alarm just yet as analysts see no fundamental weakness in the brand itself. CMG stock has a 'Strong Buy' consensus rating. Chipotle's strong unit economics, value proposition, menu innovation, and new restaurant openings position it well to deliver solid growth. However, macroeconomic uncertainty could keep the stock range bound in the near term.
Yahoo
24-04-2025
- Business
- Yahoo
Chipotle Is Finally Taking Its Guac Game South of the Border
California-based Chipotle Mexican Grill announced plans to open new restaurants in a location you may have already thought it was. On Monday, April 21, the chain revealed its plans to develop new restaurants in Mexico as part of its partnership with Alsea, a restaurant operator in Latin America and Europe. According to the announcement, fans can expect the first Chipotle to open in Mexico by early 2026. It's also exploring additional markets for expansion in the region. "We are confident that our responsibly sourced, classically-cooked real food will resonate with guests in Mexico," Nate Lawton, the chief business development officer at Chipotle, shared in a statement. "The country's familiarity with our ingredients and affinity for fresh food make it an attractive growth market for our company." Related: Chipotle Is Investing $100 Million in the Future of Food — and Is Open to Your Ideas This is just the latest in Chipotle's global expansion plan, with the fast-food chain signing its first international development agreement in 2023 to open restaurants in the Middle East with the Alshaya Group. The company noted in its statement that it currently operates three restaurants in Kuwait and two in the United Arab Emirates. The chain also highlighted it has "58 locations in Canada, 20 in the United Kingdom, six locations in France, and two in Germany," making it possible to enjoy a bowl with extra guac all over the world. Additionally, it shared that it has a "long-term target of operating 7,000 locations in the U.S. and Canada" to further expand its reach in North America."We are proud to work with an iconic brand like Chipotle and help grow its international business for years to come," Armando Torrado, the chief executive officer of Alsea, shared about the new partnership in Mexico. "Through this development agreement, we will continue to leverage our vast knowledge of the Mexican consumer and restaurant industry expertise to bring our customers the best food experiences and brands from around the world." As for what else Chipotle has going on, in March, it announced that it is bringing Chipotle Honey Chicken to its locations in North America and Europe for a limited time. As the brand shared with Food & Wine at the time, the limited menu item "perfectly balances unique heat from chipotle peppers and a touch of sweetness from pure wildflower honey." So go get it while you can — you don't even have to take a plane to try it. Read the original article on Food & Wine Sign in to access your portfolio
Yahoo
07-04-2025
- Business
- Yahoo
Chipotle to open Greenfield location on Tuesday, will offer Chipotle Honey Chicken
Attention all burrito lovers: Chipotle Mexican Grill is set to debut its first Greenfield location Tuesday morning, April 8. The popular restaurant will offer guests the opportunity to try the brand's new Chipotle Honey Chicken for a limited time, according to a news release from the company. Here's what you need to know about the new location and the grand opening: Chipotle in Greenfield will be at 8515 Sura Lane, near the intersection of South 84th Street and West Layton Avenue. Chipotle will be open daily from 10:45 a.m. to 10 p.m. Chipotle offers a variety of food options, including burritos, bowls, tacos, quesadillas and salads. Guests can customize their meals with proteins such as chicken, steak, carnitas or vegan guacamole, along with bases and toppings like rice, cheese and sour cream. The Greenfield location will feature the brand's new Chipotle Honey Chicken for a limited time. Drinks and side items, such as chips, are also available. The restaurant features the 'Chipotlane', a drive-thru and pick-up lane that allows guests to pick up digital orders without leaving their cars. Yes, Chipotle is hiring at the Greenfield location. There are approximately 30 jobs per location, according to the release. Those interested can visit for more information. For more information on Chipotle Mexican Grill, visit their official website Contact Adrienne Davis at amdavis@ Follow her on X at @AdriReportss. This article originally appeared on Milwaukee Journal Sentinel: Chipotle Mexican Grill's Greenfield location opens April 8
Miami Herald
27-03-2025
- Business
- Miami Herald
Chipotle responds to bankruptcy, store closure reports
Lately, it seems like Chipotle has been making all the headlines, with allegations of portion size reductions, its pledge not to raise its prices despite tariff increases, and the launch of its new Chipotle Honey Chicken, to name a few. However, this time, the restaurant chain made major news due to a report that not even Chipotle was expecting. Don't miss the move: SIGN UP for TheStreet's FREE Daily newsletter Imagine waking up one day and going through your regular daily routine. As the clock nears lunchtime, all you can think about is eating a Chipotle burrito bowl staked with tons of toppings and freshly made guacamole paired with salty chips. However, once you make your way to the nearest Chipotle, the location is closed, and a bankruptcy sign is tapped on the door. Related: Chipotle makes pricing pledge to customers A news outlet wrongly reported this about Chipotle, leading netizens to flood the internet and social media platforms with questions about the detrimental allegations. The news shocked and shattered the hearts of millions of burrito-loving fans worldwide. However, they were not the only ones in disbelief because even Chipotle was surprised by the out-of-field news that spread like wildfire. Related: Popular delivery app wants you to finance lunch On Mar. 20, an online publication based in Madrid, Spain, called Unión Rayo, published an article about Farmesa Fresh, a single spinoff restaurant that Chipotle had tested and ended up closing in 2024. The original article contained an image of the Chipotle logo and a different title, which may have caused the confusion. However, it has since been changed to portray the news more accurately. On Mar. 26, Chipotle (CMG) confirmed that the company has no plans of shutting down locations despite the recently published article that misreported that the restaurant chain was filing for bankruptcy. "The claim that Chipotle is closing restaurants is false," said a Chipotle spokesperson. "The false information stemmed from an inaccurate online article confusing Chipotle with a venture it tested in 2023. The story has since been corrected." More Retail News: Iconic U.S. grocery chain debuts first UK store after a decadeTarget makes bold move to answer Walmart, AmazonForget McDonald's, Walmart adds a new restaurant partner Chipotle's claims can easily be proven true in its financial statements as it is far from bankrupt and, in fact, a very profitable company. According to its earnings release for the full year of 2024, total revenue increased 14.6% compared to last year, with comparable restaurant sales up 5.4%. Additionally, as stated in its fourth-quarter report, Chipotle has zero debt and over $2 billion in cash reserves. In its 2025 outlook, Chipotle anticipates opening 315 to 345 new company-owned restaurants, with over 80% having a Chipotlane, a lane for drive-thru and digital order pick-up. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
27-03-2025
- Business
- Yahoo
Is Chipotle About to Close Its Doors? Here's What We Know
There are certain things I can't live without in this life—Starbucks' shaken espressos, potato chips, and a good Chipotle bowl. And it looks like I might have to rethink my go-to meal because rumors are swirling that Chipotle is filing for bankruptcy. Sob. The rumors about Chipotle's alleged bankruptcy first stemmed from a Madrid publication, which mentioned the closing of Farmesa Fresh, a Chipotle-invested business venture. And like many rumors, it quickly traveled to social media and spread everywhere. "Why my mama send the family chat a screenshot saying Chipotle finna shut down due to bankruptcy?????? I won't, I SHANT, I REFUSE to believe that," one user posted on X. "My coworker just came in my office & [said] Chipotle closing all the stores & filing bankruptcy...I know this [a] lie," another wrote. Rumors on social media are usually taken with a grain of salt, but after so many restaurant closures (Red Robin, Denny's, and Red Lobster), I can understand why people might believe the beloved Tex-Mex chain is falling on hard times. Fortunately, though, this is just a rumor. Chipotle representatives confirmed to Newsweek that they're not filing bankruptcy or shutting down anytime soon. In fact, Chipotle plans to open over 300 more stores, with 80 percent operating with a Chipotlane, a.k.a. a drive-through. This is a smart business move, in my opinion. I mean, who doesn't love a quick drive-through option when you're craving that perfect balance of guac and queso? And let's not forget the brand is also expanding its menu. Just earlier this month, they launched Chipotle Honey Chicken, and let me tell you, it was exactly what I needed in my burrito bowls. Honestly, at first, these rumors had me worried that my go-to lunch option was in jeopardy, but it looks like Chipotle is here to stay. If anything, they're doubling down on growth, convenience, and flavor. So, for now, we can all breathe easy and rest, knowing that our fave Tex-Mex chain isn't going anywhere. You Might Also Like 67 Best Gifts for Women That'll Make Her Smile The Best Pillows for Every Type of Sleeper Sign in to access your portfolio
