Chipotle (CMG) stock fell almost 6% before the bell on Wednesday after reporting on Tuesday that its same-store sales fell in the fourth quarter and told investors it expects no sales growth in 2026 as the company continues to navigate economic pressure on its core customer and a decline in traffic.
In the fourth quarter, same-store sales fell 2.5%, less than the 2.9% Wall Street expected, according to Bloomberg estimates. Higher menu prices offset lower transactions.
In a statement, CEO Scott Boatwright cited a “dynamic consumer backdrop” as Chipotle reported a full-year same-store sales drop of 1.7%. Wall Street analysts expected same-store sales would fall 1.8% for the year.
Its 2026 outlook disappointed the Street as the company said it expects sales in 2026 to be flat, while analysts had forecasted a 1.8% increase. In a call with investors, Boatwright said it aimed to be “conservative” in its guidance, noting that consumer trends “have been really tough to predict.”
Its forecast includes only a “modest impact from initiatives” including its four limited-time offerings.
Chipotle posted adjusted earnings per share of $0.25 compared to $0.24, alongside revenue growth of nearly 5% to $2.98 billion, slightly higher than the forecasted $2.96 billion.
Chipotle stock fell following the results, losing about 4% in after-hours trade. At the lows of the afternoon, Chipotle shares fell as much as 10%.
In its third quarter earnings, reported back in October, Chipotle cut its sales outlook, saying it expected same-store sales to decline in the low-single-digit range for its full year.
Boatwright noted that at the time “a particularly challenged cohort is the 25- to 35-year-old age group … This group is facing several headwinds, including unemployment, increased due loan repayment, and slower real-wage growth.”
On Tuesday, he said the team successfully “gamified” the ordering experience and created rewards “that were meaningful enough to drive that cohort back into our restaurants.”
In the quarter, 60% of its customers were those making over $100,000 a year, calling the cohort Chipotle’s “North Star as a brand around clean food, clean ingredients, high protein… the way they want to eat.”
In February, the company plans to bring back Chicken al Pastor. The company also unveiled a new high-protein menu late last year, which features two high-protein bowls, a salad, a burrito, and an adobo chicken taco.
Boatwright added that the protein craze is, “having an outsized impact on the younger cohort.”
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