Chipotle Mexican Grill on Tuesday reported quarterly earnings and revenue that topped analysts’ expectations, although traffic to its restaurants fell for the fourth straight quarter.

For 2026, the company is projecting flat same-store sales growth, signaling that the burrito chain’s woes are not expected to disappear quickly. Chipotle ended a bumpy 2025 with a full-year same-store sales decline of 1.7%, marking the first annual decline since 2016.

However, executives said the outlook is “conservative,” citing unpredictable consumer trends. Last year, the company cut its full-year forecast for same-store sales three times as dining habits shifted from quarter to quarter.

Shares of the company fell as much as 11% in extended trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Earnings per share: 25 cents adjusted vs. 24 cents expected
• Revenue: $2.98 billion vs. $2.96 billion expected

The fast-casual chain reported fourth-quarter net income of $330.9 million, or 25 cents per share, down from $331.8 million, or 24 cents per share, a year earlier.

Excluding impairment costs, gains from terminating restaurant leases and other items, Chipotle earned 25 cents per share.

Net sales rose 4.9% to $2.98 billion.

The company’s same-store sales fell 2.5% for the quarter, making this reporting period the third quarter of the year with same-store sales declines. However, Wall Street was anticipating a steeper same-store sales decrease of 3%, according to StreetAccount estimates.

Traffic to Chipotle restaurants fell by 3.2%. Executives have previously said they have seen a pullback in spending from consumers of all income cohorts, although low-income diners have made the most significant shift to their behavior.

Over the past year, shares of Chipotle have lost roughly a third of their value, dragging the company’s market value down to about $51 billion, as of Tuesday’s close. Investor enthusiasm for the stock waned after the fast-casual chain began reporting shrinking traffic to its restaurants.

To bring back customers, Chipotle is focusing on improving the chain’s operations and adding new menu items, rather than leaning into discounts. In December, at the tail end of the quarter, the company unveiled “protein cups,” with the goal of convincing protein-obsessed customers to stop by for a snack, not just lunch or dinner.

“I think having a taco at $3.50 and a protein cup around $3.80 across the country is really an approachable price point that really gives the consumer a meaningful way into the brand, but also solves for those people that are looking for a different choice, whether they’re GLP-1 users or looking for other dietary restrictions, more high protein or high fiber,” CEO Scott Boatwright said on a conference call with analysts.

Chipotle is trying to raise menu prices at a slower pace than inflation in the hopes of attracting price-conscious consumers. However, the company also has a strong base of high-income customers.

“After looking at the data last week, we learned that 60% of our core users are over $100,000 a year in income and average household income,” Boatwright said, adding that the chain plans to target those customers more this year.

Chipotle opened 132 company-owned locations and seven restaurants run by international licensees during the quarter. That brought its total to 334 company-owned locations and 11 international partner restaurants opened for the year.

In 2026, the company is projecting that it will open 350 to 370 new restaurants, including 10 to 15 international locations that will be run by licensees.