Chipotle Mexican Grill (CMG) shares plummeted nearly 6% in Wednesday's pre-market trading. This decline came after the company reported a drop in fourth-quarter comparable store sales on Tuesday and issued a warning to investors of zero revenue growth for 2026. The company cited persistent economic pressures on its core customer base and a continuing decline in foot traffic.

According to Bloomberg estimates, the company's comparable store sales fell by 2.5% in the fourth quarter, which was a smaller decline than the 2.9% drop anticipated by Wall Street. Increases in menu prices helped to offset a decrease in the total number of transactions.

Chief Executive Officer Scott Boatright stated in a release that the current "consumer environment is complex and volatile." For the full year, the company's comparable store sales declined by 1.7%, slightly better than the 1.8% decrease analysts had projected.

The company's 2026 financial outlook disappointed the market: Chipotle anticipates revenue to be flat, whereas analysts had previously forecasted growth of 1.8%. During a conference call with investors, Boatright stated that the company was adhering to a "conservative principle" in its guidance, noting that consumer trends are "extremely difficult to predict."

The company's performance forecast only incorporates a "modest impact" from various initiatives, including four limited-time offerings.

Chipotle reported adjusted earnings per share of $0.25 (compared to $0.24 in the prior-year period), with revenue rising nearly 5% to $2.98 billion, slightly exceeding expectations of $2.96 billion.

Following the earnings release, Chipotle's stock price fell, dropping approximately 4% in after-hours trading. During the regular trading session, the stock had hit a low point with a maximum intraday decline of 10%.

As early as last October, when it released its third-quarter earnings, Chipotle had already lowered its sales expectations, forecasting a low single-digit percentage decline in full-year comparable store sales.

Boatright had pointed out at the time that the "consumer group aged 25 to 35 is facing particularly significant challenges... This demographic is grappling with multiple pressures, including unemployment, increased loan repayment burdens, and slowing real wage growth."

On Tuesday, he indicated that his team had successfully "gamified" the ordering experience and introduced "sufficiently attractive reward mechanisms" that have successfully drawn this demographic back to its restaurants.

During the quarter, 60% of customers were from households with annual incomes exceeding $100,000. Boatright described this group as the "core target audience" for Chipotle's brand, which is built around "healthy food, clean ingredients, and high-protein diets," and represents their ideal way of eating.

In February, the company plans to re-introduce its Chicken al Pastor taco. Late last year, the company also launched a new high-protein menu, which includes two high-protein bowls, a salad, a burrito, and a Chicken Adobo taco.

Boatright added that the high-protein diet trend has "had a more significant impact on younger consumers than anticipated."