Chipotle Mexican Grill Inc (NYSE:CMG) Stock Drops Over 7% After Q3 2025 Revenue Miss

Chipotle Mexican Grill Inc (NYSE:CMG) reported its third-quarter 2025 financial results, revealing a performance that fell short of Wall Street's top-line expectations. The market's immediate reaction was decisively negative, with the stock declining sharply in after-hours trading following the announcement.

Earnings and Revenue Performance

The company's results presented a mixed picture, with a narrow beat on profitability overshadowed by a significant miss on revenue. The key figures from the quarter are detailed below.

• Revenue: The company reported revenue of $3.00 billion for the quarter. This fell short of the analyst consensus estimate of $3.06 billion.
• Earnings Per Share (EPS): Chipotle reported non-GAAP earnings per share of $0.29. This narrowly exceeded the analyst estimate of $0.2891.

While the company managed to control costs effectively to meet its bottom-line target, the failure to achieve revenue forecasts appears to be the primary driver of investor concern. The revenue shortfall suggests challenges in driving sales volume or average check size to anticipated levels.

Market Reaction and Recent Performance

The financial markets delivered a swift verdict on the earnings report. The immediate after-market trading session saw Chipotle's stock price drop over 7%, indicating investor disappointment, particularly with the revenue miss. This negative after-hours move compounds what has been a challenging period for the stock, which has declined significantly year-to-date. The market's reaction underscores the heightened scrutiny on sales growth in the current economic environment.

Context and Analyst Outlook

Recent news headlines highlighting Chipotle's third downward revision of its full-year outlook in 2025 provide crucial context for the quarterly results. The company has been navigating a period of weaker customer traffic, which aligns with the reported revenue miss. Looking ahead, analysts have established expectations for the upcoming quarter and full year, which will serve as a new benchmark for the company's performance.

• Q4 2025 Analyst Estimates: Revenue is projected at $3.14 billion, with earnings per share estimated at $0.29.
• Full-Year 2025 Analyst Estimates: Sales are forecasted at $12.21 billion, with revenue estimated at $1.21 billion.

The company's ability to meet or exceed these future estimates will be critical in rebuilding investor confidence and reversing the stock's negative momentum.

Press Release Summary

The core announcement from Chipotle centered on the release of its third-quarter 2025 financial figures. The press release highlighted positive comparable sales, a key metric for retail and restaurant chains, indicating that established locations are still growing. However, the broader financial results and the stock's reaction suggest that the rate of this growth did not meet market expectations.

For a detailed breakdown of Chipotle's historical earnings, future estimates, and analyst projections, you can review the data here: Chipotle Earnings & Estimates.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. All investment decisions involve risk, and readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.