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.