Chipotle faces first same-store sales decline in over 20 years

Core Viewpoint - Chipotle has reaffirmed its outlook for same-store sales to decline in the low-single digit range for fiscal year 2025, marking the first decline in over 20 years [1] Group 1: Same-Store Sales Performance - Bloomberg Intelligence analyst Michael Halen noted that same-store sales may have dropped by 1.8% in 2025, which would be the first decline in 23 years of publicly available data [2] - During the E. coli crisis in 2015, comparable sales only rose by 0.2%, indicating a significant shift in consumer behavior [2] - Promotions such as free chips and buy-one-get-one offers may have temporarily boosted same-store sales but could weaken the perceived value of the full menu [3] Group 2: Marketing and Brand Management - Chipotle's marketing spend increased by 90 basis points year-over-year in the third quarter, with efforts aimed at attracting younger and lower-income consumers [5] - The company has implemented various promotions, including college football BOGO offers and a digital trivia game, to engage customers [5] - Chris Brandt, the president and chief brand officer, has stepped down, which may impact ongoing marketing strategies [4][6] Group 3: Leadership Changes - Stephanie Perdue has been appointed as the interim chief marketing officer following Brandt's departure [6] - Roger Theodoredis, the chief legal officer, has also stepped down from the company [6]