Chipotle Mexican Grill (CMG) saw its shares plummet 9.68% in after-hours trading on Wednesday, following the release of its second-quarter earnings report and disappointing outlook for 2025. The fast-casual restaurant chain's results fell short of analyst expectations, sparking concerns about its growth trajectory.

For the second quarter, Chipotle reported revenue of $3.063 billion, missing the analyst consensus estimate of $3.112 billion by 1.49%. While this represented a 3.03% increase from the same period last year, the company's comparable restaurant sales decreased by 4.0%. The decline was attributed to a 4.9% drop in transactions, partially offset by a 0.9% rise in average check size. Adjusted earnings per share came in at $0.33, meeting analyst expectations but down 2.94% from the previous year.

Adding to investor concerns, Chipotle provided a cautious outlook for the remainder of 2025, projecting "about flat" full-year comparable restaurant sales. This guidance, coupled with the revenue miss and declining comparable sales, appears to have triggered the significant after-hours sell-off. Despite these challenges, the company continues to expand its footprint, opening 61 new restaurants during the quarter, with 47 featuring the new Chipotlane concept aimed at improving customer convenience and boosting sales.