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Chipotle Cuts Sales Forecast for Third Straight Quarter as Traffic Slides and Shares Tumble

Management blamed softer demand from younger and middle-income diners for the slowdown.

Overview

  • Third-quarter revenue was $3.0 billion versus slightly higher estimates, adjusted EPS matched at $0.29, and comparable sales rose 0.3% on a 1.1% higher average check as transactions fell 0.8% for a third straight quarter.
  • Chipotle now guides full-year comparable sales to a low-single-digit decline in 2025, with operating margin narrowing to about 15.9% from 16.9% on higher beef and chicken costs influenced by U.S. import levies on beef.
  • Shares dropped roughly 17% to 19% in premarket trading after the outlook cut, and several analysts lowered price targets.
  • Executives said reduced visit frequency is concentrated among customers ages 25–35 and households under $100,000 in income, and they emphasized the company will avoid broad discounting while prioritizing menu, marketing, digital and in-restaurant execution.
  • Despite the near-term pressure, Chipotle plans 350 to 370 openings in 2026, including 10 to 15 partner-operated international locations.