The stock of Chipotle Mexican Grill (CMG) is down 18% after the restaurant chain lowered its same-store sales guidance for a third consecutive quarter.
The company, which specializes in Mexican cuisine, reported earnings per share (EPS) of $0.29 U.S., which was in line with Wall Street’s expectations.
Revenue of $3 billion U.S. was short of the $3.03 billion U.S. consensus estimate of analysts who track the company’s progress.
Worse, Chipotle said that it expects its full-year same-store sales to shrink by a low-single digit percentage in 2025.
That’s a significant change from earlier this year when management projected same-store sales growth in a low- to mid-single digit percentage.
Traffic at Chipotle’s stores fell 0.8% in the latest quarter, the third consecutive quarter of declines for that metric.
In the company’s earnings release, management said they are seeing “consistent macroeconomic pressures.”
Chipotle, whose customers skew higher income, said it is seeing consumers across all income cohorts visit its restaurants less frequently.
Younger customers between the ages of 25 and 35 are particularly challenged and their visits to the restaurant chain have dropped off the most.
Senior executives cited headwinds such as rising unemployment, increased student loan repayments, and slower wage growth as reasons for the customer decline.
To help boost traffic, Chipotle said it is focusing on its in-restaurant execution, marketing, digital experience, and menu innovations.
The company expects to open 350 to 370 new restaurants in 2026.
Before today (Oct. 30), CMG stock had declined 34% this year to trade at $39.76 U.S. per share.
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