On August 13, 2025, Chipotle CEO Scott Boatwright stated that the company's 4% comparable sales decline in the second quarter of 2025 was primarily due to a pullback from low-income consumers. He noted that consumers are increasingly drifting towards 'value as a price point' because of low consumer sentiment.
Boatwright highlighted that the University of Michigan's index of consumer sentiment slid to 52.2 in April, held at that level in May, before rising to 60.7 in June. This economic uncertainty has led consumers to reduce the frequency of restaurant visits, impacting the fast-casual sector.
Despite the challenging environment, Chipotle observed that its traffic started growing again as the second quarter concluded and continued into July. This suggests a potential recovery as consumer sentiment showed some improvement, but the company acknowledges the ongoing pressure on diners' wallets.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.