Same-store sales fell 2.5% in the fourth quarter, slightly better than the 2.9% decline expected by Wall Street, according to Bloomberg estimates. The drop in transactions was partially offset by higher menu prices, News.Az reports, citing foreign media.
In a statement, Chief Executive Officer Scott Boatwright described the environment as a “dynamic consumer backdrop,” as the company posted a full-year same-store sales decline of 1.7%. Analysts had expected a 1.8% drop for the year.
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Chipotle’s outlook for 2026 disappointed investors, with the company forecasting flat sales for the year, compared with analyst expectations for a 1.8% increase. During a call with investors, Boatwright said the company aimed to be “conservative” in its guidance, noting that consumer trends “have been really tough to predict.”
The forecast assumes only a “modest impact from initiatives,” including four limited-time menu offerings.
For the quarter, Chipotle reported adjusted earnings per share of $0.25, slightly above expectations of $0.24. Revenue rose nearly 5% to $2.98 billion, edging past forecasts of $2.96 billion.
The stock fell about 4% in after-hours trading following the results and was down as much as 10% at its intraday low.
In its third-quarter earnings report released in October, Chipotle had already lowered its sales outlook, saying it expected full-year same-store sales to decline in the low single digits.
At the time, Boatwright said one of the most challenged groups was consumers aged 25 to 35, citing pressures including unemployment, increased loan repayments, and slower real wage growth. On Tuesday, he said the company had since “gamified” the ordering experience and introduced rewards designed to draw that group back into restaurants.
During the quarter, about 60% of Chipotle’s customers earned more than $100,000 annually, a cohort the company described as its “North Star” for its focus on clean food, clean ingredients, and high-protein options.
Chipotle said it plans to bring back Chicken al Pastor in February and recently introduced a new high-protein menu featuring two protein-focused bowls, a salad, a burrito, and an adobo chicken taco. Boatwright added that the protein trend is having an “outsized impact” on younger customers.
