Chipotle Stock Slips on Soft Sales, Potential Impact of Threatened Tariffs | Global News Avenue

Chipotle Mexican Grill Shares (CMG) slipped Wednesday, the second day after the Mexican fast casual restaurant chain missed revenue estimates as it tried to address investors’ concerns about possible tariffs on Mexican imports.

Chipotle reported revenue rose 13% in the fourth quarter to $2.85 billion, below the visible Alpha estimate. Comparable restaurant sales rose by 5.4% and were also lower than expected. Adjustment Earnings per share (EPS) Comply with the forecast, the price is $0.25.

The company explained that the revenue gains were helped to increase transactions by adding 119 new restaurants. Chipotle’s average inspection also increased by 1.4%.

Chipotle believes that comparable restaurant sales throughout the year are in the low to mid-digit range, while the visible Alpha is estimated at 3.76%.

Chief Financial Officer Says Tariffs Will Have 60 Benchmark Impact on Sales Cost

CFO Adam Rymer said in earnings appeal that the company expects sales costs to be in 2025 as food prices are higher, especially avocados and chicken, especially avocados and chicken. . Rymer added that if the proposed 25% tariff on Mexican and Canadian goods and a 10% levy of imports from China, “it will last for about 60.” Basic point About our sales costs. “

The prospect does not take into account potential tariffs, Lemmer said. However, he noted that Chipotle comes from only 2% of what we sell from Mexico, which includes avocados, tomatoes, limes and chili. Less than 0.5% of our sales from Canada and China. ”

Despite a decline of more than 2% today, Mexican barbecue stocks rose about 17% last year.