Fast food powerhouse Chipotle recently saw its CMG stock begin a downward spiral, falling over 20% in the past week alone. The stock settled into a 17% dip on Thursday following a disappointing earnings report. Chipotle also trimmed its comparable-restaurant sales forecast for the full year.

“We continue to see persistent macroeconomic pressures,” CEO Scott Boatwright said in the company’s earnings release, adding that Chipotle is “accelerating menu innovation and creating more engaging digital experiences” in its effort to return to growth. The CEO went on to say that Chipotle’s lackluster performance last quarter is in part due to fewer visits from a popular demographic.

On a call with analysts, Boatwright said that Chipotle is seeing a “significant pullback” from 25- to 34-year-old customers who make less than $100,000 a year. “We’re losing them to grocery and food at home,” he said. “It is one of our core consumer cohorts. And so, they feel the pinch, and we feel the pullback from them as well.” He later added that Chipotle expects the first quarter to “be the toughest” for middle- and low-income consumers, meaning the company is expecting to endure several more months of pressure.

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That means the strong dip in Chipotle’s revenue and quarterly earnings could continue into 2026, making its stock a risky investment. While the stock was up nearly 70% from 2020-2024, the stock has now cratered as much as 30% year-to-date. It’s now trading near its lowest levels since 2023.

Furthermore, Chipotle’s weaker outlook shows how inflation and changing consumer habits are squeezing even high-profile restaurant chains. The battle with inflation has affected all aspects of business and finance in the US. The Federal Reserve has only just begun cutting interest rates in the past two months. Unemployment and jobs reports last month were also stagnant, and the ongoing government shutdown hasn’t made outlook better.