Chipotle experienced its worst annual results in 2025, recording the first same-store sales decline since becoming publicly traded. Rising food and labor costs combined with weaker consumer spending contributed to the downturn in core restaurant sales.

Following the earnings report, Chipotle shares fell 37%, reflecting investor concern over the unexpected sales slump and margin pressures. The drop marks one of the largest single-year share declines for the company since its IPO.

CEO Scott Boatwright projects flat results for 2026 but outlined plans to open over 300 new locations, including the first in Mexico. The company will relaunch its rewards program and deploy new cooking equipment aimed at delivering more consistent product quality.