Chipotle Mexican Grill Inc (NYSE:CMG) Shares Plunge After Q2 Revenue Miss and Weak Outlook

Chipotle Mexican Grill Inc (NYSE:CMG) Misses Revenue Estimates, Shares Drop Sharply After Hours

Chipotle Mexican Grill Inc reported its second-quarter 2025 earnings, revealing mixed results that fell short of analyst expectations on revenue while narrowly missing earnings per share (EPS) estimates. The market reacted negatively, with shares dropping more than 9% in after-hours trading.

Key Earnings Metrics vs. Estimates

• Revenue: Reported $3.06 billion vs. analyst estimates of $3.14 billion, a miss of approximately 2.5%.
• EPS: Came in at $0.33, slightly below the consensus estimate of $0.329.
• Comparable Sales & Traffic: The company highlighted a return to positive comparable sales and transactions in June, though this was not enough to offset broader weakness earlier in the quarter.

Market Reaction & Recent Performance

The immediate after-hours sell-off suggests investor disappointment, particularly with the revenue shortfall. Prior to the earnings release, shares had already been under pressure, declining 13% year-to-date amid concerns over slowing traffic despite promotional efforts like free burrito giveaways.

Analyst Expectations for Future Quarters

Looking ahead, analysts project:

• Q3 2025 Revenue Estimate: $3.13 billion
• Full-Year 2025 Revenue Estimate: $12.38 billion
• Full-Year 2025 EPS Estimate: $1.23

The company’s revised outlook, mentioned in recent news, indicates ongoing challenges in driving sustained traffic growth, which may weigh on future performance.

Press Release Highlights

• June Recovery: Positive comparable sales and transactions in June suggest some improvement in demand trends.
• Digital Initiatives: Continued enhancements in digital ordering, including app improvements and contactless delivery, remain a focus.
• Global Footprint: The company operates over 3,700 restaurants worldwide, with expansion efforts ongoing.

For a deeper dive into Chipotle’s earnings history and future estimates, visit the earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.