"The Q3 earnings report caused CMG stock to plunge by over 20%. The company has cut its full-year 2025 comparable sales forecast for the third consecutive time, now projecting sales to decline in the low single-digit range, rather than remaining flat. Q3 revenue of $3 billion met expectations, but comparable same-store sales grew just 0.3%. Analysts expected 1.36%. CEO Scott Boatwright said that the company is seeing a "significant pullback" from customers aged 25 to 34."
"Younger customers may be in a tough spot today, but the trend may reverse as the economy loosens up with rate cuts. You're paying 28 times earnings for CMG stock today, which is far lower than the 64 times historical PE ratio . The market is unlikely to pay that much due to revenue growth slowing into the high single digits from a 3-year growth rate of 15.8% annually, but the sharp pullback prices in that slowdown and then some."
Q3 2025 results knocked down several stocks and created potential buying opportunities for long-term investors. Chipotle Mexican Grill reported Q3 revenue of $3 billion, inline with expectations, while comparable same-store sales rose just 0.3% versus 1.36% expected. The company cut its full-year 2025 comparable sales forecast for a third consecutive time, now projecting a low single-digit sales decline. CEO Scott Boatwright reported a "significant pullback" from customers aged 25–34, with higher-earning customers in that cohort pulling back more. Current valuation sits around 28 times earnings versus a historical PE near 64, reflecting slower revenue growth.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]