(Reuters) – Chipotle Mexican Grill on Wednesday tempered its annual comparable sales growth forecast as sticky inflation and economic uncertainty force consumers to rein in spending on dining out.
The company’s shares were down 5% in after-hours trading. They have fallen about 22% so far this year.
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Chipotle now expects annual comparable sales growth in the low single-digit range, compared with a prior forecast for growth in the low- to mid-single-digit range.
President Donald Trump’s sweeping tariffs on several trade partners including Mexico and Canada, as well as an escalating trade war with China, have raised fears of a recession in the U.S. and forced companies to pull back their annual expectations as consumers deal with higher costs of living.
While Chipotle has thus far benefited from menu innovation and optimizing kitchen operations, the company could face some impact from import tariffs on goods such as avocados and beef, analysts have noted.
Its comparable restaurant sales fell 0.4% in the quarter ended March 31, with Chipotle CEO Scott Boatwright saying results were impacted by adverse weather, as well as a slowdown in consumer spending.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Devika Syamnath)
