April 23, 2025 at Chipotle in the Bronx, New York.
Spencer Pratt | Getty Images
Chipotle Mexican Grill reported quarterly profit and sales on Tuesday that beat analysts’ expectations, but restaurant traffic fell for the fourth consecutive quarter.
The company expects same-store sales growth to be flat in 2026, suggesting the burrito chain’s woes aren’t likely to go away anytime soon. Chipotle ended a tumultuous 2025 with full-year same-store sales down 1.7%, its first annual sales decline since 2016.
But executives said their outlook was “conservative” due to unpredictable consumer trends. The company lowered its full-year same-store sales forecast three times last year as eating habits changed quarterly.
The company’s stock price fell as much as 11% in extended trading.
Here’s how the company reported compared to Wall Street expectations, based on a survey of analysts by LSEG.
Earnings per share: 25 cents adjusted, 24 cents expected; Revenue: $2.98 billion, $2.96 billion expected.
The fast-casual chain’s fourth-quarter net income was $330.9 million, or 25 cents per share, down from $331.8 million, or 24 cents per share, in the year-ago period.
Excluding impairment charges and gains from restaurant lease terminations, Chipotle earned 25 cents per share.
Net sales increased 4.9% to $2.98 billion.
The company’s same-store sales declined 2.5% in the quarter, making this reporting period the third quarter of this year to see same-store sales decline. But Wall Street was expecting a steeper decline in same-store sales of 3%, according to Street Account estimates.
Foot traffic to Chipotle restaurants fell 3.2%. Business owners have previously said that lower-income customers are making the biggest changes in behavior, but consumers of all income levels are seeing a pullback in spending.
Chipotle stock has lost about a third of its value over the past year, dropping the company’s market value to about $51 billion as of Tuesday’s close. Investor enthusiasm for the company’s stock cooled after the fast-casual chain began reporting a decline in foot traffic to its restaurants.
To win back customers, Chipotle is focusing on improving the chain’s operations and adding new menu items rather than relying on discounts. At the end of the quarter, in December, the company introduced the “Protein Cup,” aimed at persuading protein-obsessed customers to stop by for snacks as well as lunch and dinner.
“At around $3.50 for a taco and $3.80 for a protein cup in the U.S., we think it’s a very affordable price point that provides meaningful brand penetration for consumers, but also for people who are looking for another option, whether they’re GLP-1 users or have other dietary restrictions or are looking for something higher in protein, higher in fiber,” CEO Scott Boatright said on a conference call with analysts.
Chipotle is trying to raise menu prices at a slower pace than inflation in hopes of attracting price-sensitive consumers. But the company also has a strong base of high-income customers.
“We looked at last week’s data and found that 60% of our core users have an annual income of $100,000 or more, a median household income,” Boatwright said, adding that the chain plans to further target those customers this year.
Chipotle opened 132 company-owned stores and seven international licensee-operated restaurants during the quarter. This resulted in a total of 334 company-owned stores and 11 international partner restaurants opened during the year.
The company expects to open 350 to 370 new restaurants in 2026, including 10 to 15 overseas locations operated by licensees.
