Chipotle hasn’t posted annual negative same-store sales since 2016 during the e. Coli crisis.
But the fast casual now finds itself reporting a 1.7 percent drop in comps for fiscal 2025. In Q4, same-store sales decreased 2.5 percent. The tough macroeconomic environment, a growing battle over value, weather events, social and political volatility, and several other noisy factors have done their damage.
Sensing the need for a realignment, CEO Scott Boatwright revealed Tuesday that the brand has spent the past several months comprehensively reviewing its business, in addition to the market landscape and consumer trends.
Based on this research, Chipotle has carved a path forward. The brand has a new “Recipe for Growth” framework that covers five key facets—driving operational and culinary standards to promote value, evolving brand messaging and accelerating menu innovation to increase demand, relaunching the rewards program with more AI and personalization, continuing to expand the footprint with intention, and cultivating talent and culture.
“We look forward to the next 20 years. I’ve never been more confident in the strength of this brand and our ability to win,” Boatwright said during Chipotle’s Q4 earnings call. “Our Recipe for Growth and 2026 plan will position us for success in any environment, and we’re confident it will drive transactions, allow us to move faster, and create long-term sustainable growth for our people, our guests, and our shareholders.”
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A lot of the objectives are already underway. For instance, Chipotle is tackling operations by accelerating the rollout of high-efficiency equipment that has proven to increase speed and consistency. The package decreases prep time by two to three hours, which eliminates the need to prep during peak periods and strengthens throughput. The saved hours aren’t being put in Chipotle’s back pocket either; instead, the extra time is being reinvested “to deliver greater hospitality,” Boatwright said. The equipment is also easier for employees to use and produces higher-quality steak and chicken.
As of now, 350 restaurants have this full equipment package, and about 2,000 will have it by the end of 2026. Among the 350 units, taste of food and guest satisfaction scores are higher, and comp sales and throughput have both improved.
In terms of messaging and menu innovation, Chipotle plans to ramp up marketing spend, refresh its campaigns, and reach more consumers through new dining occasions and further menu innovation. Boatwright used the brand’s high-protein lineup as an example. Customers have access to a $3.50 taco with 15 grams of protein and a $3.80 high-protein cup, much to the delight of those eyeing smaller portions or using GLP-1 weight-loss drugs. Guests have gravitated toward these offerings; incidence of extra protein has increased 35 percent and a recent double protein promotion led to a record digital sales day.
“What’s great about the offering in the protein menu is we’re not discounting the product,” Boatwright said. “We’re just celebrating something that’s on the menu that may have little awareness today. 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.”
The protein sales are largely from younger consumers.
“A lot of the initiatives that we’ve done since last summer, especially with Red Chimichurri, the new protein menu, and campaign as well as just LTOs in general, really have outsized performance with that group,” said CFO Adam Rymer. “So you’re going to see us continue to lean in on those as well for that reason.”
In 2026, Chipotle will increase its menu innovation cadence to four LTOs, starting with the return of Chicken al Pastor next week, the brand’s most popular LTO ever. Alongside these drops, the chain will launch new sauces and “pepper in new sides and beverages” throughout the calendar. The fast casual also plans to boost awareness by increasing marketing around sports, holidays, and other shared occasions where it has the most impact and continue to bolster its catering and group businesses.
The revamped marketing plan will be spearheaded by a new CMO after Chipotle announced the resignation of chief brand officer Chris Brandt earlier this year. Boatwright said the company is looking at internal and external candidates.
“What we want to do is ensure that we stay on brand,” Boatwright said. “We’re going to stay core to who we are, and we’re just going to lean into celebrating what, again, our points of differentiation and our uniqueness in a more compelling way. So think of it as a chapter change for the brand. Chris Brandt did a tremendous job making us a purpose-driven lifestyle brand. That doesn’t change, and that doesn’t go away. So I think this is the next evolution of the marketing strategy that really pushes us into the next phase of growth for Chipotle.”
Chipotle also wants to revitalize its rewards program. In 2025, active membership rose to over 21 million thanks to promotions like Summer of Extras and Freepotle. Currently, 30 percent of sales come from the rewards program, but there’s opportunity for more. Boatwright noted that loyalty drives just 20 percent of in-restaurant transactions compared to nearly 90 percent for app transactions.
A newer version will launch this spring, directly targeting the in-restaurant customer.
The brand hopes to engage more guests by building its store count as well. Chipotle debuted a record 345 new restaurants in 2025 and surpassed the 4,000-unit mark in December. The long-term goal is to reach 7,000 stores in North America. Globally, the chain saw positive comps in Europe and strong cash-on-cash returns in Central London and Frankfurt, Germany. In the Middle East, Chipotle opened 11 partner-operated stores in 2025, pushing the total count to 14. The company wants to double its footprint and sales in this market this year, including new trade areas like Saudi Arabia. Ultimately, Chipotle believes it can reach hundreds of units in the Middle East.
The chain is also on track to open its first locations in Mexico, Singapore, and South Korea this year.
“The global growth story is gaining momentum across all markets, and we know that when we deliver our fresh delicious culinary experience with speed and exceptional hospitality, it resonates around the world,” Boatwright said.
The company finished 2025 with 4,042 locations systemwide and a $3.104 million AUV.
The fifth part of Chipotle’s strategy is cultivating human capital. Last year, the fast casual had 23,000 internal promotions, including 100 percent of regional VP roles, over 83 percent of field leader positions, and nearly 90 percent of restaurant management.
In 2026, Chipotle expects full-year comps to be flat and that it will open 350 to 370 new stores, including 10 to 15 international partner-operated units. Around 80 percent of company-owned outlets will have a Chipotlane.
