7 days ago
Chipotle Stock Drops as Company Eyes Flat 2025 Same-Store Sales
Shares of Chipotle Mexican Grill (CMG) dropped late Wednesday after the burrito-and-bowl chain scaled back its same-store sales outlook, again.
Chipotle's stock was recently off some 10% in late trading, sliding after a regular session in which it rose a bit less than 1%. (Read Investopedia's full coverage of today's trading here.) The shares, down roughly 12% this year through today's close, were looking at a move below $50, which they haven't touched in more than a month.
The company in a statement said it expects same-store sales to come in "about flat" this year. That's a downbeat update to the "low single digit" growth rate it reported when it turned in first-quarter results—which was itself a lower-than-first-projected figure, since at the start of the year management pointed toward low to mid-single-digit growth.
Chipotle said second-quarter revenue rose 3% year-over-year to $3.1 billion, while comparable-restaurant sales fell 4%. Adjusted earnings per share came in at $0.33. The sales and EPS figures were in line with Visible Alpha's consensus estimates.
"I am optimistic that our positive momentum will continue as we further support our world-class people with new tools to improve execution, introduce new menu innovations, amplify our rewards program, and introduce this great brand to more communities around the globe," CEO Scott Boatwright said in a statement.
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