Spending ‘slowdown’ takes toll on Chipotle’s Q1 as traffic slows
Chipotle Mexican Grill got off to a slow start in 2025 with sales that missed estimates and its first same-store sales decline since 2020.
In a release, Chipotle CEO Scott Boatwright said first-quarter results were impacted by headwinds that included a slowdown in consumer spending. The company also lowered the top end of its outlook for full-year same-store sales growth.
“In February, we began to see an elevated level of uncertainty impact spending habits,” Boatwright told analysts on the earnings call. “They are saving money because of concerns around the economy, which was the overwhelming reason they're reducing visits. This drove a slowdown in transaction trends that continued into April.”
The company expect traffic to its restaurants to grow again starting in the second half of the year.
“I am confident that we have a strong plan to return to positive transaction comps by the second half of the year, and during these uncertain times, we will continue to invest in the things that make Chipotle a special brand — our people, culinary, value proposition, innovation and growth,” Boatwright said in the earnings release.
Chipotle maintained its robust expansion during the quarter, opening 57 company-owned restaurants and two international licensed restaurants. It reiterated its plans to open between 315 and 345 new locations by the end of 2025. Earlier this week, the company revealed plans to enter Mexico in 2026 in partnership with Alsea, a leading restaurant operator in Latin America and Europe.
First Quarter
Net income totaled $386.6 million, or $0.28 per share, for the quarter ended March 31, compared to $359.3 million, or $0.26 per share in the year-ago period. Adjusted net earnings per share were $0.29 compared to analysts estimates of $0.28 per share.
Net sales rose 6.4% to $2.88 billion, missing estimates of 2.95 billion. Same-store sales fell 0.4%. Digital sales represented 35.4% of total food and beverage revenue.
Restaurant transactions fell 2.3% and were partially offset by a 1.9% increase in average check.
"While our first quarter results were impacted by several headwinds including weather and a slowdown in consumer spending, our teams continue to make significant progress improving the execution in our restaurants,” Boatwright said in the earnings release.
For the full year, Chipotle now forecasts same-store sales will grow by low single digits compared to its previous forecast for growth in the low- to mid-single-digit range.
Chipotle has nearly 3,800 restaurants as of March 31, 2025, in the United States, Canada, the United Kingdom, France, Germany, Kuwait, and United Arab Emirates. It is the only restaurant company of its size that owns and operates all its restaurants in North America and Europe.
