Wall Street Gets Heartburn as Gen Z Loses Its Taste for Chipotle
Chipotle’s third-quarter results show solid revenue but a sharp slowdown in customer traffic as inflation squeezes its core demographic.

Buckle up, burrito lovers, Chipotle Mexican Grill Inc. (NYSE: CMG) just dropped a earnings bombshell that's leaving Wall Street with indigestion. The company's third-quarter 2025 results, unveiled on October 29, reveal revenue holding strong but same-store sales barely budging, all while inflation-pinched diners ditch the chain for cheaper thrills.
Chipotle reported total revenue of $3.0 billion for the quarter, marking a solid 7.5% increase from the same period in 2024, largely fueled by the opening of new locations. Yet, the real story lies in the comparable restaurant sales, which inched up by a mere 0.3%, well below Wall Street's expectations of around 1% growth. Adjusted earnings per share held steady at 29 cents, aligning with analyst forecasts, but the restaurant-level operating margin slipped to 24.5% from 25.5% a year ago, squeezed by rising costs in beef, tariffs, and other inputs that the chain is hesitant to fully pass on to price-sensitive diners.
The outlook isn't exactly brimming with optimism, either. For the third time this year, Chipotle has dialed back its full-year same-store sales guidance, now projecting a slight decline overall, a stark pivot from earlier hopes of flat or modest growth. Executives point to broader economic headwinds, including persistent inflation and a pullback in discretionary spending, as key culprits. Particularly hard-hit are younger demographics—Gen Z and millennials aged 25-35—who are grappling with student debt, higher unemployment rates, and tighter budgets, leading to fewer visits to the chain's counters. It's a trend echoing across the industry, but Chipotle's premium positioning makes it especially vulnerable when wallets snap shut.






