A Chipotle in the Bronx, New York, April 23, 2025.
Spencer Platt | fake images
Chipotle Mexican Grill On Tuesday it reported quarterly earnings and revenue that beat analysts' expectations, although traffic to its restaurants fell for the fourth consecutive quarter.
By 2026, the company projects stable same-store sales growth, indicating that the burrito chain's problems are not expected to go away quickly. Chipotle ended a bumpy 2025 with same-store sales falling 1.7% for the full year, marking the first annual decline since 2016.
However, executives said the outlook is “conservative,” citing unpredictable consumer trends. Last year, the company cut its full-year same-store sales forecast three-fold as dining habits changed from quarter to quarter.
The company's shares fell as much as 11% in extended trading.
Here's what the company reported compared to what Wall Street expected, according to a survey of analysts by LSEG:
- Earnings per share: Adjusted 25 cents versus expected 24 cents
- Revenue: $2.98 billion vs. $2.96 billion expected
The fast-casual chain reported fourth-quarter net income of $330.9 million, or 25 cents per share, up from $331.8 million, or 24 cents per share, a year earlier.
Excluding impairment costs, gains from terminating restaurant leases and other items, Chipotle earned 25 cents per share.
Net sales rose 4.9% to $2.98 billion.
The company's same-store sales fell 2.5% during the quarter, making this reporting period the third quarter of the year with same-store sales declines. However, Wall Street was anticipating a steeper drop in same-store sales, of 3%, according to StreetAccount estimates.
Traffic to Chipotle restaurants fell 3.2%. Executives have previously said they have seen a decline in spending by consumers across all income groups, although low-income diners have made the most significant change in their behavior.
Over the past year, Chipotle shares have lost about a third of their value, dragging the company's market value to about $51 billion as of Tuesday's close. Investor enthusiasm for the stock waned after the fast-casual chain began reporting reduced traffic at its restaurants.
To win back customers, Chipotle is focusing on improving the chain's operations and adding new menu items, rather than resorting to discounts. In December, at the end of the quarter, the company introduced “protein cups,” aiming to convince protein-obsessed customers to stop by for a snack, not just lunch or dinner.
“I think having a taco for $3.50 and a cup of protein for around $3.80 nationwide is really an affordable price that really gives the consumer a meaningful way to access the brand, but also solves for those people who are looking for a different option, whether they're GLP-1 users or whether they're looking for other dietary restrictions, more protein or fiber,” CEO Scott Boatwright said on a conference call with analysts.
Chipotle is trying to raise menu prices at a slower rate than inflation in hopes of attracting price-conscious consumers. However, the company also has a strong base of high-income clients.
“After looking at the data last week, we learned that 60% of our top users have incomes of more than $100,000 a year and a median household income,” Boatwright said, adding that the chain plans to target those customers more this year.
Chipotle opened 132 company-owned locations and seven restaurants operated by international licensees during the quarter. This brought the total to 334 company-owned locations and 11 international partner restaurants open during the year.
In 2026, the company plans to open between 350 and 370 new restaurants, including between 10 and 15 international locations that will be managed by licensees.
