Chipotle Mexican Grill posted quarterly results that beat analysts' expectations on Tuesday, with revenue of $2.98bn and EPS of 25 cents. Despite these encouraging numbers, the fastfood chain is facing a sustained decline in customer visits. For the fourth consecutive quarter, traffic at its restaurants fell, down 3.2% over the period.

The company is bracing for a difficult 2026, forecasting flat same-store sales growth. The stagnation follows 2025 which was marked by an overall sales decline of 1.7%. Softer consumer demand, particularly amongst lower-income households, has weighed heavily on the group's market valuation. Over the past year, Chipotle shares have lost about a third of their value, bringing its market capitalization to $51bn.

To reverse the trend, management is prioritizing operational improvements and menu innovation rather than price discounts. The recent launch of "protein cups" reflects this strategy, aimed at drawing customers outside traditional mealtimes. At the same time, Chipotle is continuing its physical expansion, aiming to open between 350 and 370 new restaurants in 2026, while strengthening its presence in international markets through licensing partnerships.

Chipotle shares were down nearly 8% in extended trading on Tuesday.