Chipotle Mexican Grill Q1 Preview: Retail Gets Bullish As Traders Eye Tariff Commentary, Expansion Plans

Chipotle Mexican Grill (CMG) will report quarterly earnings after the bell on Wednesday, with analysts paying close attention to its comments on U.S. trade tariffs and how they impact the restaurant chain's business.

Chipotle has maintained that it will not increase the prices of its menu items and will offset higher input costs through automation and other initiatives.

Its earnings report comes in the backdrop of an uncertain macroeconomic environment, and analysts have taken a cautious view on the restaurant sector, which they think will be hit first if consumers cut back on spending.

Wall Street brokerages, including RBC Capital Markets, Stifel, Oppenheimer, and KeyBanc Capital Markets, have recently cut their price targets on the company's shares.

The tacos and burrito chain is expected to report a 9.4% growth in revenue for the first quarter, its lowest growth rate since at least 2022, according to Koyfin data.

Adjusted earnings per share are seen at $0.28 compared to $0.27 a year earlier.

Investors will also look for comments on its international expansion plan. On Monday, the company announced an agreement with Alsea to open restaurants in Mexico for the first time, targeting an initial launch by early 2026.

The move adds to its growing international footprint, which includes locations in the Middle East, Canada, and Europe. It also plans to open over 300 new stores this year.

On Stocktwits, the retail sentiment for the stock jumped to 'bullish' from 'neutral', while message volume rose to 'extremely high', compared to a day prior.

A user pointed out that the options activity showed that investors were betting the stock would rise by “double digits” a day after the earnings report.

Chipotle shares are down nearly 33% year to date.

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