Chipotle (CMG) just suffered its biggest single-day plunge in nearly eight years after a weak earnings report that undersocred long-running complaints about shrinking portions and poor service.
CMG dropped 13.3% on Thursday, the worst daily decline since October 2017 when the company was still clawing back from an E. coli outbreak that battered its reputation.
“Hopefully this teaches [Chipotle] to stop being stingy with the guac,” joked Barchart, echoing a sentiment that’s trailed the chain for years.
That complaint isn’t new. Back in 2015, Vox’s Eater reported that Chipotle employees were “trained to be stingy” with premium toppings like guacamole, steak, and carnitas.
Since then, social media has kept the criticism alive, with Reddit threads and Fishbowl posts regularly accusing the chain of cutting corners on portions.
Even after clawing back some of Thursday’s losses, Chipotle’s stock is still down 22% year-to-date and 8% over the past 12 months, hovering near April lows.
What’s eating Chipotle in 2025
Portion gripes aside, the sell-off is rooted in disappointing fundamentals. In its fiscal second quarter, Chipotle reported:
- Total revenue up 3% to $3.1 billion
- Comparable restaurant sales down 4%
- Adjusted earnings down 3% to $0.32 per share
The disappointing results prompted management to cut its same-store sales outlook for the year. CEO Scott Boatwright said May was especially weak as economic uncertainty kept diners away.
There was one positive. Demand picked up late in the quarter and carried into July as the economy and markets began recovering from tariff-driven pressures.
“Exiting the quarter, we returned to positive comp and transaction trends, which have continued into July,” Boatwright said on the earnings call.
It’s not just Chipotle
The fast-casual slowdown isn’t unique to CMG.
InvestorsObserver recently reported that Restaurant Brands (QSR) — parent of Burger King, Popeyes, and Tim Hortons — saw same-store sales decline across all three brands.
In its latest earnings report, rival chain Cava (CAVA) also delivered a muted outlook, warning that same-store sales growth could stay sluggish through year-end.
With traffic fading across the industry, Chipotle’s challenge isn’t just winning back portion-size critics. It’s convincing cash-strapped diners to keep showing up.
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