Chipotle Stock Tanks 15% After Chain Lowers Sales Forecast Again

Core Viewpoint - Chipotle's shares fell over 15% in after-hours trading following a sales forecast cut, marking the third consecutive quarter of reduced outlook due to ongoing macroeconomic pressures [1][2]. Company Performance - Chipotle's stock closed down 1.2% before the earnings report, anticipating same-store sales to decline in the low-single digit range for fiscal year 2025 [1]. - The company reported $3 billion in revenue, slightly below Wall Street expectations, and a net income of $382.1 million for the third quarter [3]. Customer Demographics - CEO Scott Boatwright indicated that Chipotle is "over-indexed" to younger customers, particularly those aged 25 to 35, who are facing economic challenges such as unemployment and slower real wage growth [3]. - Approximately 40% of Chipotle's sales come from households earning $100,000 or less, highlighting the impact of economic conditions on its customer base [5]. Industry Context - The broader trend shows that Americans are reducing dining out, with consumer prices rising 0.3% in September and annual inflation reaching 3%, the highest since January [6]. - Fast food chains like McDonald's and Wendy's are also experiencing declines in sales, particularly in breakfast, as consumers opt to eat at home amid economic uncertainty [6].