Chipotle Mexican Grill’s shares dropped 9.7% after missing quarterly sales estimates. The company lowered its annual sales growth target due to economic uncertainty leading to fewer Americans dining out. Rising menu prices and potential tariff policy impacts are also affecting consumer spending.

Chipotle executives noted consumer pressure on lower-income groups, leading to a shift towards cheaper menu items like chicken over beef. Visits per location fell 6% in the second quarter, while the fast-casual segment remained steady. The company is opening more stores and focusing on digital marketing and promotions to drive sales.

Despite reporting a 4% decline in comparable sales for the quarter, Chipotle remains optimistic about its strategies, including launching new menu items like Adobo Ranch and Chipotle Honey Chicken. The company’s adjusted earnings per share were in line with estimates, showing resilience in a challenging market.

Read more at Yahoo Finance: Chipotle cuts annual sales target as dining out slows; shares drop