Chipotle Mexican Grill reported quarterly revenue below expectations and cut its same-store sales forecast for the third straight quarter. Shares dropped 13% in extended trading. The company expects full-year same-store sales to shrink by a low-single digit percentage in fiscal 2025. CEO Scott Boatwright cited consistent macroeconomic pressures and a 0.8% decline in traffic.

The sluggish consumer environment finally hit Chipotle’s restaurants in 2025. Consumers across all income cohorts are visiting less frequently, with the $100,000 income group reducing spending. Customers aged 25-35 are particularly impacted by headwinds like unemployment and inflation. Chipotle’s third quarter results matched analyst expectations with earnings per share of 29 cents and revenue of $3 billion.

Although Chipotle experienced a 0.3% increase in same-store sales, the growth was driven by a 1.1% bump in average check as traffic declined. The company opened 84 company-operated locations and two licensed international stores. Chipotle is focusing on in-restaurant execution, marketing, digital experience, and menu innovation to revive traffic growth. The company plans to open 350 to 370 new locations in 2026.

Chipotle is not turning to discounting to bring back customers but is focusing on its value proposition. The company aims to expand globally with 10 to 15 international restaurants operated by partners. Chipotle recently announced a joint venture with SPC Group in Korea and signed development deals in the Middle East and Latin America.

Read more at CNBC: Chipotle (CMG) Q3 2025 earnings