Chipotle stock and American Airlines tumbled on Thursday after both companies cut forecasts as they reported second-quarter results.
Chipotle Mexican Grill during its report late Wednesday noted a 4% decline in comparable sales during the quarter, while the number of transactions fell 4.9%.
CEO Scott Boatwright noted during the earnings call that Q2 was probably the "worst condition for an aggregate storm that we could have faced." He said Chipotle had "extraordinary" comparisons to prior quarters, while consumer confidence declined.
Boatwright said the comparisons should ease in the back half of the year and hopes for a "little more favorability on consumer confidence," which he said appears to trend upward in June and July.
"I think much of what we're experiencing right now is due to macro and the consumer," he said. He pointed out that consumers were drifting toward value offerings. "I think as sentiment improves, the business will improve. That's probably the biggest headwind we face."
Chipotle now expects "about flat" full-year comparable restaurant sales, down from its prior forecast for low single-digit growth.
The restaurant chain did not provide an earnings or revenue guidance with its release.
Chipotle reported a 1 cent decline in earnings to 33 cents per share adjusted. Total revenue rose 3% to $3.06 billion. The earnings matched FactSet views, but revenue missed expectations for $3.11 billion.
Chipotle stock unraveled 13.3% Thursday, diving further from its 50-day line. CMG stock is down 24% in 2025.
American Airlines
American Airlines on Thursday topped Q2 views but shares posted a steep retreat on lowered guidance.
Earnings declined to 95 cents per share adjusted, still beating FactSet views for 78 cents. Revenue rose slightly to a record $14.39 billion, which edged out estimates for $14.29 billion.
CEO Robert Isom in the release noted that American was facing an "evolving demand environment."
American Airlines said it expects a third-quarter loss between 10 cents per share and 60 cents per share adjusted, based on future demand trends and fuel prices. The forecast is well below FactSet expectations for 3 cents per share profit.
The carrier also restored its 2025 outlook after withdrawing the guidance in April due to tariff uncertainties. American said that it now expects 2025 adjusted earnings to range from a 20 cent per share loss to 80 cent per share profit. That's well below its prior January forecast for $1.70 to $2.70 per share adjusted gain. FactSet analysts expect earnings of 72 cents per share for the year.
American Airlines said that the top end of the range is achievable if domestic demand continues to strengthen. It only expects to be at the bottom end of the range if there are unexpected macro weaknesses.
AAL stock fell 9.6% Thursday, to retreat below its 21-day exponential moving average and its 50-day line.
American Airlines has recovered from its April lows, but is still down more than 34% this year.
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