Chipotle $CMG ( ▲ 1.94% ) delivered a modest earnings beat for the fourth quarter, but investors focused on a softer outlook for the year ahead. Despite topping expectations on profit and revenue, the fast-casual chain warned that same-store sales growth could stall in 2026.
That cautious tone sent shares sharply lower after the report.
Quarterly Results Come in Better Than Feared
For Q4, Chipotle posted adjusted earnings per share of $0.25, edging past expectations of $0.24. Revenue reached $3 billion, slightly above the $2.9 billion analysts had forecast.
Comparable-store sales fell 2.5%, which was still a decline but not as bad as the 2.9% drop Wall Street was bracing for. In other words, the quarter showed stabilization, but not a return to strong growth.
Guidance Leaves Little Room for Excitement
The bigger issue was the outlook. Chipotle said it expects comparable-store sales to be flat in 2026, well below analyst expectations for about 1.7% growth.
When a restaurant chain signals no same-store growth, it suggests traffic and pricing power are both under pressure. That is a tough backdrop for a company that has historically relied on steady menu price increases and loyal customer traffic to drive expansion.
Consumers Still Feeling the Squeeze
Chipotle has repeatedly pointed to cautious consumers as a headwind, and that theme continues. Higher prices across food, housing, and everyday expenses appear to be limiting how often customers splurge on fast-casual meals.
Even with a recognizable brand and strong long-term store expansion plans, Chipotle $CMG needs stronger demand trends to reaccelerate sales. For now, the market seems unconvinced that turnaround is just around the corner.