Chipotle Stock Plunges 10.19% on Earnings Miss

Chipotle Mexican Grill's stock experienced a significant drop of 10.19% in pre-market trading on July 24, 2025, reflecting investor concerns over the company's recent financial performance and outlook.

Chipotle's second-quarter earnings report revealed a 4% decline in comparable-restaurant sales, missing revenue expectations. The company attributed this drop to a 4.9% decrease in transactions, despite opening 61 new restaurants. This marks the second consecutive quarter where Chipotle has missed expectations and lowered its full-year outlook.

CEO Scott Boatwright highlighted the company's summer marketing initiatives as a potential driver for improvement in the second half of the year. However, investors remain cautious, given the two quarters of weak results and the company's revised guidance for roughly flat comparable-restaurant sales for the full year.

The negative impacts of lower sales volumes and cost inflation for some ingredients were partially offset by menu price increases. Nevertheless, the company's operating margin contracted by 1.5 percentage points to 18.2%, and adjusted earnings per share were slightly down.