Chipotle Mexican Grill, Inc. (CMG) released its Q4 earnings for 2024, showing that the results largely met Wall Street estimates, yet the company’s conservative outlook led to a drop in shares. The fast-casual restaurant chain reported earnings of $2.65 per share and total revenues of $2.2 billion, which reflects an increase of approximately 11% year-over-year. However, the company’s guidance for the upcoming fiscal year has prompted concerns among investors. CEO Brian Niccol acknowledged the challenges ahead, stating, ‘We continue to navigate through various economic headwinds, but we remain committed to our growth strategy.’ The company anticipates comparable restaurant sales growth of 6% to 8% for the full year, which falls short of analysts’ expectations of 9%. Post-announcement, Chipotle’s shares dropped by 4% in after-hours trading. Despite the mixed results, the company has been successful in expanding its footprint, with over 3,200 locations across the U.S. and significant growth in digital sales. The CEO emphasized the brand’s focus on enhancing customer experience, stating that they are ‘dedicated to delivering high-quality food and excellent service.’ As Chipotle continues to compete in a challenging market, investors are closely monitoring its strategic initiatives and cost management plans for signs of future performance.
