A Chipotle restaurant in San Francisco on Jan. 31, 2025.
David Paul Morris | Bloomberg | Getty Images
Chipotle Mexican Grill on Wednesday cut its forecast for same-store sales growthΒ this yearΒ afterΒ traffic declined for aΒ second straight quarter.
The burrito chain now anticipates flat same-store sales growth for 2025, down from its prior projectionΒ ofΒ a low-single digit percentageΒ increase.Β Chipotle trimmed its same-store sales outlook for theΒ second consecutive quarter.
Shares of the company fell 6% in extended trading.
Here’s what the company reportedΒ for its second quarterΒ compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: 33 cents adjusted, in line with expectations
- Revenue: $3.06 billion vs. $3.11 billion expected
Chipotle’s net salesΒ rose 3% to $3.06 billion, thanks to its new restaurants. But the company’s same-store sales shrank 4%, steeper than last quarter’s decline of 0.4% and StreetAccount estimates of a 2.9% decrease for the second quarter. Average check increased roughly 1%, partially offsetting traffic declines of 4.9%.
Last year, ChipotleΒ outpacedΒ the rest of the restaurant industry, bucking a trend of sluggish sales and traffic declines. But by the end of December, the company started seeing softer sales, which executives chalked up to the timing of Christmas and New Year’s Eve. Then came bad weather in January, including wildfires in California, and a broader consumer pullback in February.
During the company’s first-quarter earnings call,Β CEO Scott Boatwright said diners’ concerns about the economy led them to skip restaurant visits and save their money instead.
Chipotle reported second-quarter net income of $436.1 million, or 32 cents per share, down from $455.7 million, or 33 cents per share, a year earlier.
Excluding impairment charges, legal costs and other items, the company earned 33 cents per share.
Chipotle reiterated its forecast that it would open between 315 and 345 new restaurants this year.