Chipotle's Q4 2025 earnings beat expectations, but same-store sales declined for the first time since 2016 due to lower traffic, and the stock dropped on growth concerns.

Chipotle reported fourth-quarter 2025 earnings slightly above expectations, with adjusted EPS of $0.25 and revenue of $2.98 billion, driven by new store openings and gift card breakage. Same-store sales fell 2.5% year-over-year, marking the first annual decline since 2016, due to declining traffic despite higher prices. The company expects flat comparable sales in 2026, with first-quarter comps projected between -1% and -2%, citing inflation, storm impacts, and consumer price sensitivity. Digital sales made up 37.2% of revenue, and Chipotle plans to expand its High Efficiency Equipment Package to 2,000 locations by year-end. The stock dropped after the report, reflecting investor concerns over growth sustainability and pricing pressures.