Chipotle Mexican Grill Shares Drop After Weak Guidance Overshadows In-Line Earnings

Chipotle Mexican Grill's stock fell sharply in extended trading as investors reacted to a subdued outlook despite third-quarter earnings matching expectations. Revenue growth of 7.5% to $3 billion fell $20 million short of estimates, with stagnant same-store sales revealing cracks in the fast-casual chain's armor.

The company added 86 new locations including two international outposts, but a 0.3% same-store sales increase masks concerning trends. Customer traffic declined 0.8%—the third consecutive quarterly drop—as economic pressures finally impact Chipotle's relatively affluent customer base. CEO Scott Boatwright acknowledged the sector-wide slowdown is now affecting the chain that previously outperformed peers.

Chipotle's revised guidance signals deeper challenges ahead. Management now projects low-single-digit same-store sales declines for 2025, a stark reversal from prior expectations of growth. The adjustment reflects persistent macroeconomic headwinds that are reshaping consumer spending patterns across income brackets.