CMG
📉 Chipotle reported disappointing Q1 results, with comparable sales declining slightly (-0.4%) and margins tightening, falling short of expectations.
🌬️ Management attributed the weak performance to external headwinds, specifically adverse weather conditions and a noticeable slowdown in consumer spending.
📈 Despite the setback, the company plans continued expansion, guiding for 315-345 new restaurant openings (roughly 10% unit growth), aiming for a return to stronger performance.
@bernardodegarcia:
“Chipotle Mexican Grill also, wow, 5% down. Long time no see Chipotle Mexican Grill. Ah, it’s so cheap, but it’s still not cheap. Damn squirrel. It’s trading at almost 40 times future earnings. Great company, but Brian Niccol, the great CEO, eh, is at Starbucks… Let’s look at the earnings release… Revenue up 6.4%. Comps down 0.4%. Margins 26%, a drop from 27%. ‘Our first-quarter results were impacted by different headwinds, including weather and a slowdown in consumer spending. Our teams continue to make significant progress improving the execution of our restaurants, innovating, and building Chipotle.’ Ah, ‘I am confident that we have a plan to return…’ They haven’t been very good. We have guidance here. Full-year comps, low single-digit range. Okay. But well, at least growth of 315 to 345 new company-owned restaurant openings. 80% having a Chipotlane. How many Chipotles are there? 3000… What are they opening then? 10%. Yes, approximately 10%. It’s okay, it’s not bad growth, but so many out there, there are none in Spain. Oh well.”
Watch the exact part of the video where @bernardodegarcia talks about Chipotle Mexican Grill, Inc. here:
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