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

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Chipotle reaffirmed Monday that its outlook for same-store income volition diminution successful the low-single digit scope for fiscal twelvemonth 2025, which would people the chain's archetypal fiscal twelvemonth same-store income diminution successful much than 20 years.

In a enactment published past week, Bloomberg Intelligence elder edifice and foodservice expert Michael Halen wrote that same-store income whitethorn person dropped 1.8% successful 2025 based connected statement — its archetypal diminution successful 23 years of publically disposable data. During the chain’s E. coli situation successful 2015, comparable income roseate 0.2%. 

He added that Chipotle's determination to ramp up discounting whitethorn assistance postulation successful the adjacent term, but risks undermining marque equity. 

“Promotions similar escaped chips and buy-one-get-one offers apt gave same-store income a bump successful December and aboriginal January but awesome a weaker worth cognition of afloat paper pricing to customers. We judge amended operations, bigger repast sizes, and mundane worth are superior ways to thrust higher transactions and same-store sales. Portion (sizes), particularly for to-go orders, proceed to beryllium an contented for customers,” helium wrote. 

Additionally, president and main marque serviceman Chris Brandt has stepped down from his role, effectual immediately. Brandt has been with the concatenation for astir 8 years and conscionable past twelvemonth added president to his title. 

Brandt has overseen Chipotle's accelerated selling efforts successful the past fewer quarters aimed astatine winning backmost consumers, particularly younger and lower-income consumers with whom the marque implicit indexes. In the 3rd quarter, Chipotle reported a 90-basis-point summation successful selling walk year-over-year, including promotions specified arsenic a assemblage shot BOGO, December BOGOs, and Chipotle IQ integer trivia game. 

Stephanie Perdue, who joined the institution arsenic vice president of marque selling successful 2018, volition service arsenic the company’s main selling serviceman connected an interim basis.

Further, Roger Theodoredis, who has served arsenic main ineligible serviceman since 2018, has besides stepped down from the company, effectual immediately.

Contact Alicia Kelso astatine [email protected]

Follow her connected TikTok: @aliciakelso