Chipotle Mexican Grill reported rising traffic to its restaurants, surpassing analysts’ earnings estimates for the fourth quarter of 2024. However, the company’s same-store sales forecast for 2025 disappointed investors, leading to a more than 3% drop in shares during extended trading on February 6, 2024, in Manhattan, New York City.
- Chipotle beats quarterly earnings estimates.
- Same-store sales forecast disappoints investors.
- Net income increased to $331.8 million.
- Transactions rose 4% in the quarter.
- Expansion includes 120 new restaurants opened.
- 2025 same-store sales growth projected lower.
Chipotle’s fourth-quarter net income reached $331.8 million, equating to 24 cents per share, a rise from $282.1 million or 20 cents per share a year prior. The company reported earnings per share of 25 cents, adjusted for certain charges, slightly above the expected 24 cents. Revenue for the quarter was $2.85 billion, aligning with analyst expectations.
Despite positive earnings, Chipotle’s same-store sales growth of 5.4% narrowly missed the anticipated 5.7%. Transactions increased by 4%, indicating continued growth in customer traffic, contrasting with Trends in the broader restaurant industry, which has seen declines as consumers opt to cook at home.
- Earnings per share: 25 cents adjusted vs. 24 cents expected
- Revenue: $2.85 billion, meeting expectations
- Net sales growth: 13.1%
Looking ahead, Chipotle projects low- to mid-single digit same-store sales growth for 2025, below the Wall Street forecast of 5.4%. The company plans to open between 315 and 345 new locations, with over 80% featuring a “Chipotlane” for digital orders. This expansion strategy follows a recent international push, including the opening of its first location in Kuwait.
In summary, while Chipotle’s fourth-quarter results demonstrated strong earnings and revenue growth, the company’s cautious outlook for same-store sales in 2025 has raised concerns among investors, impacting stock performance.
