Chipotle Stock Dips On Q4 Earnings: Retail's Upbeat Despite Feared Tariff Impact On Avocados

Shares of Chipotle Mexican Grill Inc. (CMG) were down 5% in after-market trading on Tuesday after rising about 1% earlier, following better-than-expected fourth-quarter earnings amid looming threats of higher prices for ingredients due to Trumo tariffs, but retail sentiment stayed upbeat.

Chipotle’s Q4 EPS stood at $0.25, beating the consensus estimates of about $0.24. Comparable restaurant sales increased 5.4% over the prior year period. Its revenues stood at$2.8 million, in line with consensus estimates. 

For 2025, Chipotle expects full year comparable restaurant sales growth in the low to mid-single digits. It also plans to open 315 to 345 new restaurants, the company said.

"Chipotle had another outstanding year, delivering strong transaction driven comps each quarter, expanding margins, adding over 300 new restaurants, gaining momentum in key industry leading brand metrics, making progress on many restaurant operating initiatives and building our footprint internationally," said Scott Boatwright, CEO of Chipotle.

"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 which will enable us to achieve our long-term ambitious goals of reaching 7,000 restaurants in North America, growing our AUVs beyond $4 million, expanding margins and making progress toward becoming a global iconic brand."

Sentiment on Stocktwits inched up in the ‘extremely bullish’ category. Message volumes also went up in the ‘extremely high’ zone.

On its earnings call, Chipotle executives played down potential impact of Trump tariffs on its avocado supply that makes up a key ingredient on its menu.

Mexico is said to supply about 90% of avocados sold in the US, according to CNBC but CEO Scot Boatwright told CNBC that only about half of its avocados come from Mexico It also sources from Peru, Colombia, and the Dominican Republic.

Chipotle said it expects cost of sales to increase about 60 basis points should tariffs go into effect, Chief Financial Officer Adam Rymer reportedly said.

Chipotle stock is down 2% year-to-date.

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