Chipotle posts drop in same-restaurant sales amid spending slowdown

A dish served at Chipotle restaurant
Chipotle has posted a decline in same-restaurant sales for the first quarter. (Source: Chipotle/Facebook)

Chipotle Mexican Grill has posted a decline in same-restaurant sales for the first quarter, which management blamed on a slowdown in consumer spending.

For the quarter ended March 31, the company’s comparable restaurant sales decreased 0.4 per cent year-on-year, due to lower transactions of 2.3 per cent, partially offset by a 1.9 per cent uplift in average check.

Total revenue rose 6.4 per cent to $2.9 billion, driven by the opening of 57 company-owned restaurants.

On the bottom line, net income rose from $359.3 million a year ago to $386.6 million.

CEO Scott Boatwright said several headwinds, including weather and a slowdown in consumer spending during the quarter, impacted the company.

“I am confident that we have a strong plan to return to positive transaction comps by the second half of the year, and during these uncertain times, we will continue to invest in the things that make Chipotle a special brand – our people, culinary, value proposition, innovation and growth,” he added.

For the full year, Chipotle expects comparable restaurant sales growth in the low single-digit range. The company targets about 315 to 345 new company-owned restaurant openings.

Last year, the chain recorded a 7.9 per cent uplift in comparable restaurant sales.

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