Chipotle ended “a year of progress and resilience” with same-store sales down 2.5% in the fourth quarter, including a 3.2% drop in traffic.
That’s how CEO Scott Boatwright described it after reporting results, which capped a year of negative sales and traffic trends. For the year, same-store sales were down 1.7%, with transactions down 2.9%, offset by a 1.2% increase in average check.
It was Chipotle’s first full-year drop in comparable sales since 2016, which the chain was navigating a food-safety crisis.
Looking ahead to 2026, Chipotle is taking a more conservative stance, saying same-store sales are expected to be flat.
That’s in part because Chipotle is taking a more cautious and targeted approach to menu price increases, which this year are expected to total about 1% to 2% overall.
But Boatwright said the consumer dynamic is still evolving and tough to gauge.
“We believe it’s prudent to keep our full year guidance grounded in a conservative baseline,” he said.
Throughout last year, Chipotle (and its fast-casual peers) saw younger and lower-income consumers, in particular, cut back on dining out.
But after a comprehensive review of the fast-casual chain’s business and the industry landscape, Boatwright said Chipotle is on the right path. This year, the chain will move forward with a “Recipe for Growth” plan that began to show traction in January, at least until snowstorms blanketed much of the country.
Chipotle is investing more in marketing, upping its spend by about 3% in the first quarter, with a focus on new menu news, including four limited-time promotions (up from the brand’s more traditional cadence of two) and new sides and beverages.
Menu innovation will continue to spotlight protein and fiber, which is resonating with younger diners in particular, he said.
Chipotle, for example, late last year rolled out a new menu highlighting a bowl with 80 grams of protein. A double-protein promotion during the quarter achieved a record day for digital sales.
The brand also spotlighted lower-priced-but-high-protein items, like a single taco (with 15 grams of protein) for only $3.50, and a simple cup of grilled chicken for about $3.80, which Boatwright said appeals to GLP-1 drug users and those looking for smaller portions.
Boatwright said about 60% of Chipotle’s customers make more than $100,000 per year, and marketing will likely focus on those diners, with an emphasis on what differentiates the brand. A recent “Choices” ad campaign, for example, compares Chipotle’s freshly cooked food and quality ingredients with frozen, assembly-line fast food.
The chain is also on the hunt for a new chief marketing officer to replace former Chief Brand Officer Chris Brandt, who stepped down earlier this year.
Describing the increased focus on marketing as a “chapter change,” Boatwright said he is looking for a “unicorn” of a leader who could also support the digital team as it reworks the loyalty program this year, and looks for ways to drive transactions with third-party delivery partners.
Operations have also been a focus. Boatwright said the 350 restaurants that now have the upgraded kitchen equipment package are also showing reduced prep times, score higher on customer satisfaction and are starting to show meaningful improvement in comparable sales.
The equipment package, which includes new produce slicers, a dual-sided plancha, dual-vat fryers and a three-pan rice cooker, is expected to be in 2,000 units by the end of the year, and Boatwright said the plan is to accelerate the rollout in 2027.
“We will go as fast as we possibly can,” said Boatwright.
Chipotle opened a record 334 restaurants during 2025, ending the year with 4,056 around the globe. Next year, the chain is planning 350 to 370 new openings, including 10 to 15 international franchised locations.
That’s roughly one Chipotle opening every day, said Boatwright, as the chain pushes to reach 7,000 units in North America.
“We think that’s the right growth rate for our brand, and it gives us a lot of confidence that we’ll continue to build them and have returns in the 60% range,” he said.
Chipotle’s stock, meanwhile, took a hit after hours, falling more than 6% to $36.69.
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