Chipotle Mexican Grill Wednesday slashed annual sales forecast for the third time this year, signaling that even its typically affluent diners are cutting back on eating out amid mounting cost pressures.
While inflation continues to strain household budgets and dampen consumer confidence, concerns over a prolonged government shutdown added to economic uncertainty. Even higher-income consumers are trading down, putting pressure on fast-casual chains such as Chipotle.
The company's restaurant visits rose just 0.5% between July and September over the year earlier, trailing the 0.7% growth across the fast-casual segment, according to data from Placer.ai, a foot-traffic analytics firm.
The burrito chain expects 2025 comparable restaurant sales to decline in the low-single digit range, compared with its prior forecast of about flat. Analysts were expecting a 0.28% drop in comparable sales, according to data compiled by LSEG.
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