Chipotle Mexican Grill (CMG) saw its shares plummet 9.11% in after-hours trading 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 amid changing consumer behavior.
For the second quarter, Chipotle reported revenue of $3.06 billion, missing the analyst consensus estimate of $3.11 billion. While this represented a 3% 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.
Adding to investor concerns, Chipotle significantly lowered its outlook for the remainder of 2025, projecting "about flat" full-year comparable restaurant sales. This guidance, down from the previous expectation of low single-digit growth, suggests ongoing challenges in the consumer environment. CEO Scott Boatwright acknowledged the impact of declining consumer confidence, particularly among lower-income diners, and noted some market share loss from April through May. Despite these headwinds, 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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.