A customer carries a Chipotle bag in San Francisco, California, United States, Friday, January 31, 2025.
David Paul Morris | Bloomberg | Getty Images
Chipotle Mexican Grill On Wednesday, the group announced quarterly revenue below expectations and reduced its same-store sales forecast for the third consecutive quarter.
Chipotle expects its full-year same-store sales to decline by a low-single-digit percentage in fiscal 2025. That’s a big change from February, when the burrito chain expected same-store sales to increase by a low-to-mid-single-digit percentage.
CEO Scott Boatwright said the company faces “ongoing macroeconomic pressures.” Traffic fell 0.8%, the third consecutive quarter of decline.
After the chain outperformed the entire restaurant industry in 2024, the slowdown in consumption finally hit its restaurants this year. Chipotle’s customer base skews higher income, so it has been sheltered from the decline in spending by lower-income consumers reported by fast-food chains last year.
Here’s what the company reported compared to what Wall Street expected, based on a survey of analysts by LSEG:
- Earnings per share: 29 cents adjusted, in line with expectations
- Income: $3 billion versus $3.03 billion expected
Shares of the restaurant chain fell about 5% in extended trading.
Chipotle reported third-quarter net income of $382.1 million, or 29 cents per share, compared with $387.4 million, or 28 cents per share, a year earlier.
Excluding small adjustments for stock-based compensation and other items, the burrito chain still earned 29 cents per share.
Net sales grew 7.5% to $3 billion, fueled by new restaurants. The company has opened 84 company-operated locations and two authorized international stores.
Chipotle’s same-store sales rose 0.3%, countering last quarter’s decline. But the sales growth at restaurants open at least a year was driven by a 1.1% increase in average check, even as traffic declined.
To reignite traffic growth, Chipotle is focusing on its restaurant execution, marketing, digital experience and menu innovation, according to Boatwright.
By 2026, Chipotle plans to open 350 to 370 new locations. This goal includes 10 to 15 international partner-operated restaurants, as the company aims to expand globally.
Last month, Chipotle announced a joint venture with SPC Group, a Korea-based restaurant operator. It has also signed development agreements with operators in the Middle East and Latin America.