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Chipotle cuts same-store sales forecast for third straight quarter as diner visits drop again
Chipotle's shares dropped 33% this year as younger customers face economic challenges, leading to a third consecutive cut in the 2025 sales forecast amid weak demand.
- On Wednesday, Chipotle Mexican Grill, Inc. reported third-quarter results, posting $3 billion in revenue and $382.1 million in net income.
- Wall Street analysts surveyed by LSEG expected earnings per share of 29 cents and anticipated modest same-store sales improvement in fiscal year 2025, after Chipotle trimmed its full-year same-store sales outlook to flat last quarter.
- Boatwright noted the chain's customer mix, saying Chipotle is over-indexed to younger customers facing unemployment, loan repayment and slower wage growth, with many sales from households earning $100,000 or less.
- Shares sank more than 15% in after-hours trading Wednesday after Chipotle cut its sales forecast, the third quarter in a row, with fiscal 2025 same-store sales expected to fall in the low-single-digit range.
- Broader data show consumer prices rose 3% in September, with higher inflation and weaker dining out sales at McDonald's and Wendy's indicating sector-wide pressure.
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13 Articles
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Total News Sources13
Leaning Left2Leaning Right0Center5Last UpdatedBias Distribution71% Center
Bias Distribution
- 71% of the sources are Center
71% Center
L 29%
C 71%
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