Chipotle Reports First Drop in Same-Store Sales Since 2020 as Consumer Spending Slows

Chipotle Mexican Grill posted weaker-than-expected first-quarter revenue on Wednesday, revealing its first decline in same-store sales since the pandemic began in 2020. The downturn comes amid a notable slowdown in consumer spending, coupled with weather-related challenges and shifting seasonal demand.

“We saw a meaningful drop in consumer traffic starting in February,” said CEO Scott Boatwright. “Saving money due to economic uncertainty was the top reason people were cutting back on dining out.”

• Net sales rose 6.4% year-on-year, but the 0.4% drop in same-store sales fell well short of analysts’ expectations.

• Restaurant transactions declined 2.3%, with only a 1.9% increase in average check to cushion the impact.

"Burrito Season" Delayed, Traffic Recovery Uncertain

Chipotle typically enjoys a seasonal sales boost from Easter through May, known internally as “burrito season.” However, this year’s late Easter postponed the usual surge, dampening early spring results.

While the launch of chipotle honey chicken helped lift March sales, the company doesn’t expect traffic to recover meaningfully until the second half of 2025.

“We have a strong plan in place to return to positive traffic growth,” Boatwright said. “We remain focused on our people, culinary innovation, and strengthening our value proposition.”

Revised Sales Forecast, Inflation Headwinds Ahead

Chipotle lowered its same-store sales growth outlook for the year to low single digits, down from its previous low- to mid-single-digit range.

The company also anticipates higher inflation in Q2, driven by tariffs on aluminum and broad 10% import duties introduced by the White House.

• CFO Adam Rymer said tariffs would raise cost of sales by 20 basis points (0.2%) in Q2, and 50 basis points (0.5%) going forward.

• Chipotle sources roughly half of its avocado supply from outside Mexico, amplifying exposure to global trade dynamics.

“Our forecasts exclude postponed tariffs and don’t include new 25% tariffs on Mexico and Canada, since we're currently shielded by the USMCA agreement,” Rymer added.

Store Expansion Still on Track

Despite headwinds, Chipotle is sticking to its plan to open between 315 and 345 new restaurants by the end of 2025.

Market Response

• Chipotle shares fell over 2% in after-hours trading.

• Earlier in the day, the stock closed up 3.5%, highlighting investor optimism before the earnings release.

Looking Ahead

As economic uncertainty lingers, Chipotle is ramping up marketing efforts and leaning into AI-driven customer insights to boost relevance.

“We’re working on making Chipotle more visible, more loved, and more frequently visited,” Boatwright said.