Shares of Chipotle Mexican Grill (CMG) are down 5% after the quick-service restaurant chain reported fourth-quarter 2024 financial results that largely matched Wall Street’s expectations.
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The California-based company announced earnings per share (EPS) of $0.25, which narrowly beat analysts’ consensus forecasts of $0.24. Revenue in the October through December quarter totaled $2.85 billion, which matched expectations. Sales were up 13% from a year earlier.
Chipotle also reported that its same-store sales rose 5.4% in Q4 2024, narrowly missing consensus estimates of 5.7% growth. Transactions at its restaurant outlets increased 4%, building on the burrito chain’s growth in foot traffic. In September, Chipotle brought back its Smoked Brisket offering, which management said has proven popular with restaurant patrons.
Store Openings
Chipotle Mexican Grill opened 120 new restaurant outlets during the fourth quarter, including one international location. After 30 years of focusing primarily on the American market, Chipotle is now expanding internationally. Last year, the company entered Kuwait, its first new country in a decade.
In terms of forward guidance, Chipotle is projecting low- to mid-single digit same-store sales growth for all of this year. The company also expects to open between 315 and 345 new restaurants, more than 80% of which will have a “Chipotlane” for digital orders and pick-ups.
CMG stock has risen 19% over the last 12 months.
Is CMG Stock a Buy?
The stock of Chipotle Mexican Grill has a consensus Moderate Buy rating among 18 Wall Street analysts. That rating is based on 13 Buy and five Hold recommendations assigned in the last three months. The average CMG price target of $69.82 implies 18.32% upside from current levels. These ratings are likely to change after today’s financial results.
