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• Revenue: $2.9 billion, a growth of over 6% year over year.

• Comparable Sales: Decline of 0.4%.

• Digital Sales: Represented 35.4% of total sales.

• Restaurant Level Margin: 26.2%, a decrease of 130 basis points year over year.

• Adjusted Diluted Earnings Per Share: $0.29, representing 7% growth over last year.

• New Restaurant Openings: 57 new restaurants, including 48 Chipotles.

• Cost of Sales: 29.2%, an increase of about 40 basis points from last year.

• Labor Costs: 25%, an increase of about 60 basis points from last year.

• Marketing and Promo Costs: 3% of sales in Q1, an increase of about 10 basis points from last year.

• Cash and Investments: $2.1 billion with no debt.

• Share Repurchase: $554 million of stock purchased at an average price of $54.15.

• Warning! GuruFocus has detected 2 Warning Sign with SNT.

Release Date: April 23, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Chipotle Mexican Grill Inc (NYSE:CMG) reported a sales growth of over 6% to reach $2.9 billion in the first quarter.

• The launch of Chipotle Honey Chicken has been successful, driving incremental transactions and receiving positive guest feedback.

• The company opened 57 new restaurants in the quarter, with plans to open between 315 and 345 new restaurants this year.

• Chipotle Mexican Grill Inc (NYSE:CMG) is investing in technology and innovation, including the rollout of produce slicers and a new equipment package to improve efficiency.

• The company maintains a strong balance sheet with $2.1 billion in cash and no debt, allowing for continued investment in growth and innovation.

Negative Points

• Comparable sales declined by 0.4% in the first quarter, indicating a slowdown in consumer spending.

• Restaurant level margin decreased by 130 basis points year over year to 26.2%.

• The company faces headwinds from inflation and higher usage costs, particularly in avocados, dairy, and chicken.

• Chipotle Mexican Grill Inc (NYSE:CMG) is experiencing a slowdown in underlying transaction trends due to consumer uncertainty and economic concerns.

• The impact of tariffs on cost of sales and new store builds remains uncertain, potentially affecting margins and capital expenditures.

Q & A Highlights

Q: What gives you confidence that fast casual competition won't impede your target for positive traffic in the back half of this year? A: Scott Boatwright, CEO, stated that Chipotle's strong value proposition, unmatched speed, and brand strength give confidence. Despite competition, Chipotle often sees increased traffic and garners more than its fair share when competitors open nearby.