How Chipotle lost its sizzle

The Newport Beach-based chain saw its same-store sales decline last year as consumers cut back on spending.

- By Caroline Petrow-Cohen

CHIPOTLE executives told investors this month they have no plans to lower menu prices.

(SPENCER PLATT Getty Images)

Chipotle Mexican Grill, the Newport Beach-based chain known for its bursting burritos and lunch bowls, just finished its worst year.

Its same-store sales declined last year for the first time since going public two decades ago. The downturn reflects what analysts say is a broader slowdown in fast casual chains - considered a step above fast food but below full-service restaurants.

In a K-shaped economy where the few with money are still spending while everyone else is anxious about rising prices and keeping their jobs, Chipotle is stuck in a sour spot. It isn’t a destination for the rich. Instead, it is a skippable splurge for those looking to save.

"Our guests [are] placing heightened focus on value and quality and pulling back on overall restaurant spending," Chipotle Chief Executive Scott Boatwright said this month after announcing earnings.

In an uncertain economy muddied by tariffs and an immigration crackdown, consumers are cutting back on discretionary spending and increasingly seeking the best value on essentials such as lunch and dinner.

Chipotle has boomed in popularity since opening in Denver in 1993. It moved its headquarters to California in 2018.

The burrito staple opened 334 new locations last year, bringing its total to roughly 4,000. The company’s net income was $1.5 billion in 2025, virtually flat compared with the year prior. Its comparable sales lost steam with a roughly 2% decline in 2025 following a 7.4% increase in 2024.