Chipotle's Mixed Q1: Sales Up, Margins Down

0:00Morgan Stanley just trimmed its price target on Chipotle Mexican grill from $50 down to $49, but they're sticking within. Overweight rating. The stock closed April 30th at about $34, so that target still lives pretty bullish despite the tweak. Chipotle dropped solid first quarter numbers with revenue hitting $3.1 billion up 7.4% from last year. Comparable sales grew half a percent, beating expectations for a drop. Thanks to menu tweaks and more foot traffic. Investors got a mixed bag though, as margins took a hit, operating margin fell to 12.9% from 16.7%. Higher food, beef, freight, and labor costs, squeeze profits with earnings per share, down 17.2% to 24 cents. The company plans 1-2% menu price hikes to fight back on costs, while pushing expansion hard. They opened 49 new spots in the quarter. Mostly would drive through Chipolanes.

1:00They aim for 350-370 openings in 2026. Chipotle's still growing sales and traffic, leaning on digital channels and nearly 40% of revenue, but those margin pressures will test if it. Hose that premium vibe long-term. That wraps Durham news today, brought to you with AI.