Chipotle continuing to grow sales and restaurant margins in Europe but cuts forecasts again as consumers pull back on dining out: Chipotle Mexican Grill chief executive Scott Boatwright has said the business is continuing to grow sales and restaurant margins in Europe but the company has cut its sales forecast for the third straight quarter as consumers pull back on dining out. The company said in its third quarter results for the three months ended 30 September 2025 it now expects full-year like-for-like sales to fall by a low-single digit percentage in 2025. In February, the group was forecasting like-for-like sales would grow by a low to mid-single digit percentage. Shares of the company plunged 13% in extended trading. Boatwright said the company is seeing “consistent macroeconomic pressures”. Visits fell by 0.8%, the third straight quarter of decline. But Boatwright had some positivity about its European performance. “In Europe, we have made great strides in culinary and operational execution, and we continue to grow comparatives, restaurant margins, and cash-on-cash returns,” he said. “Next year, we will begin to expand new restaurant openings in the region, and we continue to believe Europe is a big opportunity for Chipotle.” The brand is seeing consumers across all income cohorts visit less frequently. Consumers who make less than $100,000, who account for roughly 40% of the company’s customer base, have further pulled back their spending, Boatwright said. He added the group is dining out less often due to concerns about the economy and inflation. Customers between the ages of 25 and 35 years old are particularly challenged, he said on the company’s third quarter earnings call. “We tend to skew younger and slightly over-indexed to this group relative to the broader restaurant industry,” Boatwright said. He cited headwinds like unemployment, increased student loan repayments and slower real wage growth accounting for inflation, which are hurting that particular group of consumers. “We’re not losing that customer – they’re just coming less often,” Boatwright said. Chipotle reported third quarter net income of $382.1m, down from $387.4m a year earlier. Net sales rose 7.5% to $3bn, fuelled by new restaurants. The company opened 84 company-operated locations and two licensed international stores. Chipotle’s like-for-like sales increased 0.3% in a reversal from last quarter’s decline. But the growth in sales at restaurants open at least a year came from a 1.1% bump in average transaction value, as traffic dipped. “While we did see encouraging results as we accelerated our marketing spend and rolled out carne asada and red chimichurri, our underlying trends remain challenged throughout the quarter and into October,” chief financial officer Adam Rymer said. Boatwright said Chipotle would not turn to discounting to bring back customers. To revive visits, Boatwright said the group is focusing on its in-restaurant execution, marketing, digital experience and menu innovation. Looking to 2026, Chipotle anticipates that it will open 350 to 370 new locations. That target includes ten to 15 international restaurants operated by partners, and “one or two” company-owned locations in Europe.