Chipotle Q1 Earnings Top, Revenues Lag Estimates, Comps Fall Y/Y

Core Insights - Chipotle Mexican Grill, Inc. (CMG) reported mixed first-quarter 2025 results, with earnings exceeding expectations while revenues fell short [1][3] - The company faced challenges such as unfavorable weather and reduced consumer spending but made progress in restaurant operations and brand expansion [2] Financial Performance - Adjusted earnings per share (EPS) for Q1 2025 were 29 cents, surpassing the Zacks Consensus Estimate of 28 cents, and increased by 7.4% from 27 cents in the previous year [3] - Quarterly revenues reached $2.88 billion, missing the consensus estimate of $2.91 billion by 1.5%, but rose 6.4% year-over-year, driven by new restaurant openings [3] Comparable Sales and Digital Performance - Comparable restaurant sales declined by 0.4% compared to a 5.4% growth in the previous quarter, impacted by a 2.3% drop in transactions, partially offset by a 1.9% increase in average checks [4] - Digital sales accounted for 35.4% of total food and beverage revenues during the quarter [4] Restaurant Openings - Chipotle opened 57 new restaurants in 48 locations during the first quarter, including a Chipotlane, and two internationally licensed restaurants [5] Cost and Operating Metrics - Food, beverage, and packaging costs as a percentage of revenues were 29.2%, up from 28.8% in the prior year, influenced by inflation in key ingredients and a shift in protein mix [6] - The restaurant-level operating margin was 26.2%, down from 27.5% in the previous year [7] - Adjusted net income for the quarter was $396.8 million, reflecting a 7.5% year-over-year increase [7] Balance Sheet Overview - As of March 31, 2025, cash and cash equivalents were $725.6 million, down from $748.5 million at the end of 2024, while inventory decreased to $41.4 million from $48.9 million [8] 2025 Outlook - Management anticipates comparable sales growth in the low-single-digit range for 2025 and plans to open between 315 and 345 new company-operated restaurants, with over 80% featuring a Chipotlane [10]