Chipotle Stock Plunges 10.46% on Disappointing Earnings

On July 24, 2025, Chipotle Mexican Grill's stock experienced a significant drop of 10.46% in pre-market trading, reflecting a challenging quarter for the company.

Chipotle Mexican Grill reported a disappointing second quarter, with revenue growth falling short of analyst expectations. The company's comparable-restaurant sales declined by 4%, a stark contrast to the 11% growth seen in the same period last year. This decline was driven by a 4.9% decrease in transactions, indicating fewer customers visiting Chipotle's restaurants.

In response to the disappointing results, Chipotle lowered its full-year outlook, now expecting comparable restaurant sales to be roughly flat. This revision comes after two consecutive quarters of missed expectations and lowered guidance. The company's CEO, Scott Boatwright, pointed to summer marketing initiatives as a potential source of momentum to improve results in the second half of the year.

Investors reacted negatively to the earnings report, with shares plunging 11% in after-hours trading. The company's stock had already been down about 12% year to date, and the latest results have raised concerns about Chipotle's ability to navigate the current macroeconomic environment and maintain customer loyalty in the face of higher menu prices.