Reported about 18 hours ago
Chipotle's stock saw a significant drop after the company announced a reduction in its sales outlook for the third consecutive quarter, citing economic pressures affecting its primary customer base of younger individuals. CEO Scott Boatwright highlighted that young adults aged 25-35, particularly those unemployed or facing financial challenges, are visiting less frequently due to rising living costs and loan repayments. The company anticipates continued sales declines, revealing that low- to middle-income households represent a large portion of its sales. Despite efforts to innovate and enhance digital experiences, Chipotle's future growth remains uncertain as sales expectations continue to falter.
Source: YAHOO