Chipotle Mexican Grill's stock experienced a significant after-hours plunge of 7.86% on Tuesday, following the release of its fourth-quarter 2025 financial results.
The sharp decline came despite the company reporting quarterly revenue and adjusted earnings per share that slightly exceeded analyst expectations. Chipotle's Q4 revenue rose 4.9% to $2.98 billion, beating estimates of $2.96 billion, while adjusted EPS of $0.25 surpassed the consensus forecast of $0.24.
However, investors reacted negatively to the company's outlook for 2026, which projected comparable restaurant sales to be "about flat" for the full year. This guidance fell well below Wall Street's expectation of a 1.86% increase, reflecting concerns about consumer spending pullback amid ongoing economic uncertainty. The company's conservative forecast overshadowed its better-than-expected quarterly performance and plans to open 350-370 new restaurants in 2026.
