A Chipotle in the Bronx in New York, April 23, 2025.

Spencer Platt | Getty Images

Chipotle Mexican Grill on Tuesday reported quarterly earnings and revenue that topped analysts’ expectations, although traffic to its restaurants fell for the fourth straight quarter.

For 2026, the company is projecting flat same-store sales growth, signaling that the burrito chain’s woes are not expected to disappear quickly. Chipotle ended a bumpy 2025 with a full-year same-store sales decline of 1.7%, 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 forecast for same-store sales three times as dining habits shifted from quarter to quarter.

Shares of the company fell as much as 11% in extended trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Earnings per share: 25 cents adjusted vs. 24 cents expected
• 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, down 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% for the quarter, making this reporting period the third quarter of the year with same-store sales declines. However, Wall Street was anticipating a steeper same-store sales decrease of 3%, according to StreetAccount estimates.

Traffic to Chipotle restaurants fell by 3.2%. Executives have previously said they have seen a pullback in spending from consumers of all income cohorts, although low-income diners have made the most significant shift to their behavior.

Over the past year, shares of Chipotle have lost roughly a third of their value, dragging the company’s market value down to about $51 billion, as of Tuesday’s close. Investor enthusiasm for the stock waned after the fast-casual chain began reporting shrinking traffic to its restaurants.

To bring back customers, Chipotle is focusing on improving the chain’s operations and adding new menu items, rather than leaning into discounts. In December, at the tail end of the quarter, the company unveiled “protein cups,” with the goal of convincing protein-obsessed customers to stop by for a snack, not just lunch or dinner.

“I think having a taco at $3.50 and a protein cup around $3.80 across the country is really an approachable price point that really gives the consumer a meaningful way into the brand, but also solves for those people that are looking for a different choice, whether they’re GLP-1 users or looking for other dietary restrictions, more high protein or high fiber,” CEO Scott Boatwright said on a conference call with analysts.

Chipotle is trying to raise menu prices at a slower pace than inflation in the hopes of attracting price-conscious consumers. However, the company also has a strong base of high-income customers.

“After looking at the data last week, we learned that 60% of our core users are over $100,000 a year in income and average 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 run by international licensees during the quarter. That brought its total to 334 company-owned locations and 11 international partner restaurants opened for the year.

In 2026, the company is projecting that it will open 350 to 370 new restaurants, including 10 to 15 international locations that will be run by licensees.

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U.S. Secretary of Health and Human Services Robert F. Kennedy Jr. attends a briefing at the White House in Washington, Jan. 7, 2026.

Kevin Lamarque | Reuters

New federal dietary recommendations have sparked mixed reactions from the embattled restaurant industry, as changing guidelines could encourage Americans to dine out less often or choose from a smaller pool of restaurants when they do leave home.

The departments of Health and Human Services and Agriculture unveiled the nutrition guidelines on Wednesday. The recommendations, which are updated every five years, pushed for higher consumption of protein and full-fat dairy and reduced intake of processed foods and sugary drinks.

The guidelines are primarily a public health tool for federal agencies, health-care providers and nutrition experts, so it’s unclear how much they will influence individual consumer choices. Although the recommendations largely focus on eating at home, they lightly touched on the restaurant industry as well.

“When dining out, choose nutrient-dense options,” the guidelines advise.

While the recommendations could discourage Americans from spending at restaurants — especially at a time when high inflation has curbed trips to dine out — some pockets of the industry had a positive reaction to the changes. The changes could give a particular boost to struggling fast-casual chains like Sweetgreen and Chipotle, which have long touted the type of natural ingredients championed by HHS Secretary Robert F. Kennedy Jr.’s “Make American Healthy Again” movement.

One lobbying executive who represents restaurant companies, whose organization was involved in meetings with the White House on the new guidelines, said the outcome could have been “far worse” for the sector. The person, who declined to be named because their organization was involved in private discussions, said the end result was better for the industry than proposed guidance from earlier in 2025 was. 

However, the executive said they are still concerned the guidelines could encourage Americans to eat at home when diners have affordable options to incorporate those foods at restaurants. That implication could also ruffle feathers among restaurant chains and their franchisees.

Despite those potential concerns from some, industry lobbying group the National Restaurant Association backed the new guidelines.

“Now, more than ever, restaurant operators are offering a wider variety of options, allowing consumers to choose what best fits their dietary needs, preferences, and lifestyles. We congratulate Secretary Kennedy and the Trump Administration on the release of the new guidelines and look forward to continued collaboration with policymakers to ensure that nutrition guidance remains practical, flexible, and supportive of access and innovation,” National Restaurant Association spokesman Sean Kennedy said in a statement to CNBC. 

Restaurant franchise lobbyist the International Franchise Association, called the approach “nuanced” and said it may limit the number of price increases restaurants have to make.

“Fortunately, the more nuanced approach of these guidelines helps ensure our members will not have to raise prices and that consumers can continue to make their own choices,” the group said. “Any future regulations or guidance must keep potential cost increases top of mind, as restaurant owners already face numerous regulatory burdens and supply chain challenges, which most often disproportionately affect small business owners, like franchisees, and ultimately, American consumers.”

How fast casual could benefit

Some of the most supportive reactions came from chains that had been beaten down in 2025, including Chipotle and Sweetgreen. Both fast-casual names saw pullbacks from younger consumers who continue to struggle in a K-shaped economy, where spending has concentrated more among the highest earners.

Sweetgreen, which was the biggest restaurant sector laggard last year with a nearly 80% stock decline, cheered the new guidelines.

A spokesperson told CNBC in a statement: “We keep ultra-processed ingredients and added sugars out of our restaurants, source transparently from partners we know and trust, and cook our food from scratch. That is why we are excited to see the new Food Pyramid so clearly emphasizing whole, real, and unprocessed foods.”

Sweetgreen founder and CEO Jonathan Neman wrote on X, “The U.S. government is for the 1st time urging Americans to avoid highly processed food, added sugar, and refined carbohydrates. Today, the government finally told the American people the truth. Avoid highly processed food (which is 70% of a child’s diet). Avoid refined carbohydrates.  CELEBRATE REAL FOOD… LFG!”

Chipotle debuted a High Protein Menu with items ranging from 15 to 81 grams of protein.

Source: Chipotle Mexican Grill

Similarly, Chipotle, which recently debuted a high-protein and GLP-1-friendly menu, told CNBC it has already catered to similar dietary guidelines.

“Our menu of real ingredients makes it easy to follow the new dietary guidelines that prioritize high-quality protein, healthy fats, fruits, vegetables, and whole grains — while limiting highly processed foods and refined carbohydrates,” Chipotle spokeswoman Laurie Schalow said in a statement. “With real food made from wholesome ingredients — without artificial colors, flavors, or preservatives — Chipotle offers choices that fit a balanced, modern approach to eating.”

The company’s stock was down nearly 40% in 2025, but some Wall Street analysts have pointed to it as a potential winner in the new GLP-1 landscape, where users of the drugs often opt for smaller portions with more protein.

Kennedy has spearheaded the MAHA platform, championing a diet based on whole foods to prevent chronic disease. At times, his beliefs, like his advocacy for beef tallow and encouragement of more red meat in diets, have run afoul of both public health experts and industry players, like McDonald’s.

Kennedy’s criticism of processed foods has put fast-food chains on the defensive, although President Donald Trump is a vocal and loyal fan, particularly of McDonald’s.

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A customer carries a Chipotle bag in San Francisco, California, US, on Friday, Jan. 31, 2025.

David Paul Morris | Bloomberg | Getty Images

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

Shares of the company plunged 13% in extended trading.

Chipotle is expecting its 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 was projecting 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 by 0.8%, the third straight quarter of declines.

After the chain outperformed the broader restaurant industry in 2024, the sluggish consumer environment finally hit its restaurants this year. Chipotle’s customer base skews higher income, so it was insulated from the pullback in spending from low-income consumers that fast-food chains were reporting last year.

But now Chipotle is seeing consumers across all income cohorts visit less frequently. Consumers who make less than $100,000, who account for roughly 40% of the company’s customer base, have further pulled back their spending, Boatwright said. He added that the group is dining out less often due to concerns about the economy and inflation.

Customers between the ages of 25 and 35 years old are particularly challenged, he said on the company’s earnings call.

“We tend to skew younger and slightly over-indexed to this group relative to the broader restaurant industry,” Boatwright said.

He cited headwinds like unemployment, increased student loan repayments and slower real wage growth accounting for inflation, which are hurting that particular group of consumers.

“We’re not losing that customer. They’re just coming less often,” Boatwright said.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Earnings per share: 29 cents adjusted, in line with expectations
• Revenue: $3 billion vs. $3.03 billion expected

Shares of the restaurant chain fell about 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 slight adjustments for stock-based compensation grants and other items, the burrito chain still earned 29 cents per share. 

Net sales rose 7.5% to $3 billion, fueled by new restaurants. The company opened 84 company-operated locations and two licensed international stores.

Chipotle’s same-store sales increased 0.3% in a reversal from last quarter’s decline. But the growth in sales at restaurants open at least a year came from a 1.1% bump in average check, as traffic dipped.

“While we did see encouraging results as we accelerated our marketing spend and rolled out carne asada and red chimichurri, our underlying trends remain challenged throughout the quarter and into October,” CFO Adam Rymer said.

Boatwright stood by the chain’s overall value proposition, saying that it would not turn to discounting to bring back customers. However, he acknowledged that consumers are lumping the chain in with other fast-casual competitors, whose average prices are closer to $15 per entree than Chipotle’s roughly $10 price point.

To revive traffic growth, Chipotle is focusing on its in-restaurant execution, marketing, digital experience and menu innovation, according to Boatwright.

Looking to 2026, Chipotle anticipates that it will open 350 to 370 new locations. That target includes 10 to 15 international restaurants operated by partners, as the company aims to expand globally.

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

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