Chipotle Mexican Grill announced its quarterly earnings on Tuesday, surpassing analysts’ expectations for both earnings and revenue, despite a continued decline in restaurant traffic for the fourth consecutive quarter. The fast-casual chain reported a 1.7% decline in same-store sales for 2025, marking its first annual decrease since 2016. Looking ahead to 2026, Chipotle forecasts flat same-store sales growth, reflecting caution amid unpredictable consumer trends.
For the fourth quarter, Chipotle’s net income reached $330.9 million, translating to earnings of 25 cents per share, slightly below the previous year’s figure of $331.8 million. Revenue increased by 4.9% to $2.98 billion, while same-store sales fell by 2.5% in this reporting period, a less severe drop than the anticipated 3%. Restaurant traffic also declined by 3.2%.
In response to changing consumer behavior, particularly among low-income diners, Chipotle aims to enhance operations and introduce new menu items rather than resorting to discounts. Recently launched “protein cups” intend to attract more customers seeking snack options. CEO Scott Boatwright noted that 60% of Chipotle’s core customers earn over $100,000 annually, suggesting a strategic focus on this demographic.
The company opened 132 new restaurant locations in the quarter, contributing to plans for 350 to 370 additional openings in 2026, including new international locations. However, despite exceeding earnings expectations, Chipotle’s stock price initially dropped by up to 11% in after-hours trading as investors reacted to the ongoing decline in customer traffic and sales.
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