Chipotle $CMG’s (CMG) fourth-quarter earnings beat expectations, showing that more customers are still flocking to its restaurants despite it hiking prices by 2% last year.
The burrito maker beat fourth-quarter earnings expectations, but expects weak sales in 2025
Chipotle $CMG’s (CMG) fourth-quarter earnings beat expectations, showing that more customers are still flocking to its restaurants despite it hiking prices by 2% last year.
Strong traffic didn’t keep the burrito maker’s stock from taking a hit after it said it expects weak same-store sales growth for 2025, prompting shares to drop by more than 4% in after hours trading.
“I want to make sure that as we continue to scale Chipotle, everything we do is in service of our guests or those who serve our guests,” said Scott Boatwright, Chipotle’s CEO, in a statement.
The California-based Chipotle reported revenue for the quarter of $2.85 billion, meeting Wall Street’s revenue expectations. Total revenue for the quarter jumped by 13.1%, according to the company’s earnings release.
Chipotle’s same-store sales rose 5.4%, but were still slightly below analysts expectations of 5.7%. Still, transactions climbed 4%, continuing the chain’s streak of higher foot traffic.
This is no small feat, especially as the broader restaurant industry continues to grapple with sluggish customer traffic, as many consumers cut back on dining out to save money. In Dec. 2024, Chipotle said it would raise prices by 2%, further building on its price hikes, which have increased four times over the last two years. The month prior, it named Scott Boatwright as CEO after Brian Niccol stepped down to take over Starbucks $SBUX (SBUX).
In 2025, the chain is projecting sales growth to be between the low to mid-single digit range. It also plans to open 315 to 345 new locations, many of which will feature “Chipotlanes” – the drive-thru for digital orders that’s become a key part of the brand’s strategy.
In Sept. 2024, Chipotle introduced two robots to help streamline operations and meet rising demand. The first, called “Autocado,” automates the process of cutting, coring, and peeling avocados. Currently in use at a Huntington Beach, California location, Autocado can process an avocado in just 26 seconds.
The second robot, “Augmented Makeline,” assists with assembling bowls and salads at a location in Corona del Mar, California. With about 65% of digital orders being bowls or salads, the robot helps manage high-volume orders. While these robots show potential, Chipotle’s previous attempt at automation, a robot called “Chippy” for cutting chips, was discontinued due to cleaning challenges.
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