(Reuters) - Chipotle Mexican Grill forecast annual comparable sales below Wall Street estimates on Tuesday as budget-conscious consumers have increasingly pulled back spending on dining out amid ongoing economic uncertainty.

Shares of the company were down about 7% after the bell.

Ongoing concerns about persistently rising prices of basic commodities such as food, coupled with a sluggish labor market, have marred consumer appetite for nice-to-have items including dining out.

Lower-income consumers are struggling to keep pace with rising food and rent costs, which climbed in December, while higher-income households have largely maintained their expenditure.

Chipotle now expects fiscal 2026 same-store sales to be about flat, compared with analysts' estimate of a 1.86% rise, according to data compiled by LSEG.

In October, Chipotle warned that consumer spending would remain pressured through early 2026, noting pullbacks among U.S. households earning less than $100,000 a year - a group that accounts for about 40% of its sales.

The chain has in the past also struggled to draw customers aged 25 to 35, who remain constrained by resumed student loan payments and softer wage growth.

However, it reported quarterly sales of $2.98 billion, compared with analysts' estimate of $2.96 billion. It earned adjusted profit of 25 cents per share, edging past an estimate of 24 cents per share.