"Chipotle's Q4 2025 results revealed operational strain that likely accelerated Ackman's exit. Comparable sales dropped 2.5%, driven by a 3.2% decline in transactions, which was only partially offset by a 0.7% increase in the average check. This marked the first same-store sales decline in over two decades. Operating margin compressed to 14.1% from 14.6% year-over-year, while food costs climbed to 30.2% and labor held at 25.5%."
"The stock's performance reflects this pressure. CMG has fallen 37.44% over the past year and sits 3.14% lower year-to-date. Despite opening 132 restaurants in Q4 with 97 Chipotlanes, expansion hasn't offset weakening consumer demand. Bureau of Economic Analysis data shows food services spending grew just 3.9% from January through November 2025, lagging the 4.6% increase in total personal consumption expenditures."
Pershing Square exited its full Chipotle position and rotated into Meta, reflecting a preference for AI infrastructure exposure over fast-casual dining. Chipotle reported Q4 2025 comparable sales down 2.5% with transactions falling 3.2% and only a 0.7% rise in average check, marking the first same-store sales decline in over two decades. Operating margin compressed to 14.1% while food costs rose to 30.2% and labor remained 25.5%. CMG shares have fallen 37.44% over the past year despite opening 132 restaurants and 97 Chipotlanes. Insider sales by senior executives increased caution. Meta posted $59.89 billion revenue, an EPS beat at $8.88, and 24% revenue growth driven by higher ad impressions and pricing.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]