Chipotle stock sinks after company reports Q4 same-store sales drop 2.5%, forecasts no sales growth in 2026

Chipotle (CMG) reported Tuesday its same-store sales fell in the fourth quarter and told investors it expects no sales growth in 2026 as it continued to navigate economic pressure on its core customer and a decline in traffic.

In the 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.

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.

Last quarter, Boatwright told investors the company’s reduced outlook was due to “ongoing volatility in our trends in the consumer environment.”

Boatwright noted that “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.”

Deutsche Bank analyst Lauren Silberman wrote in a note to clients ahead of the results that she expected the company to focus on underlying trends in the macro environment and highlight innovation, like the recent return of 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.

TD Cowen’s Andrew Charles said in a note he was eager to hear more about Chipotle’s marketing plan following the “abrupt” departure of its chief brand officer, Chris Brandt, earlier this month. As the company searches for a new CMO, it has named Stephanie Perdue as interim marketing chief.