Chipotle Shares Plunge 13% After Sales Forecast Cut Amid Consumer Spending Slowdown
Chipotle Mexican Grill's stock tumbled 13% in extended trading after reporting disappointing third-quarter results and lowering its full-year sales outlook. The burrito chain posted $3 billion in revenue, falling short of Wall Street's $3.03 billion estimate, as customer traffic declined for the third consecutive quarter.
The company now anticipates low single-digit percentage declines in same-store sales for 2025, reflecting broader pressures on consumer spending. Average check prices ROSE 1.1%, but couldn't offset the 0.8% traffic drop across all income segments. Younger demographics face particular strain from unemployment and student loan burdens.
Operating margins contracted to 15.9% from 16.9% year-over-year as protein costs squeezed profitability. While adjusted EPS of $0.29 met analyst expectations, the consecutive guidance reductions signal deepening challenges in the casual dining sector.
