Chipotle stock craters as company says young people without jobs can't afford their food anymore

Core Viewpoint - Chipotle has cut its full-year sales outlook for the third consecutive quarter due to declining customer traffic and economic pressures affecting its core demographic, particularly younger consumers [1][4]. Group 1: Economic Pressures - The CEO highlighted that the company is experiencing "persistent macroeconomic pressures," particularly affecting younger consumers who are under financial strain [1]. - The 25- to 35-year-old age group is facing significant challenges, including high unemployment rates and increased loan repayments, which are impacting their spending habits [2]. - Households earning $100,000 or less account for approximately 40% of Chipotle's total sales, and this demographic is reducing their frequency of visits [3]. Group 2: Sales Performance - Chipotle's stock fell by as much as 19% following the earnings release, reflecting investor concerns over the company's performance [4]. - The company now expects same-store sales to decline in the low-single-digit range for the year, marking the third consecutive quarter of lowered sales expectations [4]. - In the third quarter, Chipotle reported revenue of $3 billion, slightly below the expected $3.02 billion, with digital sales constituting 36.7% of total food and beverage revenue [5]. Group 3: Earnings and Future Plans - Adjusted earnings per share were reported at $0.29, aligning with market expectations, while same-store sales growth was only 0.3%, below the anticipated 1% [6]. - The company plans to enhance restaurant execution, increase marketing spending, and innovate digital experiences to drive future growth [6][7].