Chipotle (CMG) Q3 2025 earnings

Chipotle Mexican Grill It reported Wednesday that quarterly revenue fell short of expectations and lowered its same-store sales forecasts for the third straight quarter.

The company’s shares lost 13% of their value in long-lasting transactions.

Chipotle expects full-year same-store sales to shrink by a low-single-digit percentage in fiscal 2025. That’s a big change from February, when the burrito chain predicted same-store sales would grow by a low-to-mid-single-digit percentage.

CEO Scott Boatwright said the company is seeing “consistent macroeconomic pressures.” Traffic fell 0.8% for the third consecutive quarter.

The sluggish consumer environment finally affected restaurants this year, after the chain surpassed the overall restaurant industry in 2024. Chipotle’s customer base skews higher income, so it was insulated from the pullback in spending by lower-income consumers that fast food chains reported last year.

But Chipotle is now seeing fewer visits from consumers across all income groups. Consumers making less than $100,000, who make up about 40% of the company’s customer base, are further pushing back on spending, Boatwright said. He added that the group’s frequency of dining out has decreased due to concerns about the economy and inflation.

Customers ages 25 to 35 are particularly struggling, he said on the company’s earnings call.

“We tend to be younger and a little bit over-indexed to that group compared to the broader restaurant industry,” Boatwright said.

Unemployment, rising student loan repayments and Slower real wage growth, accounting for inflation these harm a specific group of consumers.

“We’re not losing customers. They’re just coming in less,” Boatwright said.

Here are the company’s reported results compared to Wall Street expectations, based on a survey of analysts by LSEG:

• Earnings per share: Adjusted 29 cents, in line with expectations
• Revenues: 3 billion dollars, while the expectation was 3.03 billion dollars

Shares of the restaurant chain fell nearly 5% in extended trading.

Chipotle reported third-quarter net income of $382.1 million, or 29 cents per share, down from $387.4 million, or 28 cents per share, a year earlier.

Excluding minor adjustments for stock-based compensation grants and other items, the burrito chain still earned 29 cents per share.

net sales It increased by 7.5% to $3 billion, driven by new restaurants. The company has opened 84 company-operated locations and two licensed international stores.

Chipotle’s same-store sales rose 0.3%, reversing last quarter’s decline. But the increase in sales at restaurants open at least a year was driven by a 1.1% increase in the average check as traffic decreased.

“While we saw encouraging results as we ramped up our marketing spend and launched carne asada and red chimichurri, our underlying trends remain challenging throughout the quarter and into October,” said CFO Adam Rymer.

Boatwright stood by the chain’s overall value proposition and said it wouldn’t resort to discounting to bring customers back. However, he acknowledged that consumers lump the chain in with other fast-casual competitors, whose average prices are closer to $15 per entrée than Chipotle’s roughly $10 price.

Chipotle is focusing on in-restaurant app, marketing, digital experience and menu innovation to stimulate traffic growth, according to Boatwright.

Chipotle predicts it will open 350 to 370 new locations by 2026. This target includes 10 to 15 international restaurants operated by partners, as the company aims to expand worldwide.

Last month, Chipotle announced a joint venture with Korea-based restaurant operator SPC Group. It has also signed development agreements with operators in the Middle East and Latin America.