Chipotle’s Burrito Machine Blows a Gasket (-16%) After CEO Blames Broke Gen Z Fanbase

Listen, I’m not saying Chipotle’s downfall started when Niccol fled to Starbucks, but when your new CEO’s excuse is “young people are broke,” maybe it’s time to start headhunting…

Chipotle’s got a new problem on its hands, and according to Brian Niccol’s replacement (Scott Boatwright), it’s not the salsa shortage… it’s the broke 20-somethings who used to buy it.

If you’re a shareholder, take this advice: Do NOT look at the stock chart. Chipotle is currently down (sighs in disbelief) 19% after the company cut its sales outlook for the third straight quarter. The board is probably staring at Niccol’s LinkedIn page like an ex they should’ve married when they had the chance.

Boatwright came to the table with plenty of excuses… my personal favorite being when he told investors the company is facing “persistent macroeconomic pressures.” Which really means: “our customers are broke, and the economy’s cooked.”

And maybe he’s got a point… Chipotle’s target audience (ages 25-35) has become what economists politely call “financially challenged.” They’re juggling student loans, slower wage growth, and in many cases, no job at all. The unemployment rate for 20 to 24-year-olds has climbed to 9.2%, up from 7.9% last year. And since about 40% of Chipotle’s customers earn under $100K, that group cutting back means fewer lines out the door… and more cold tortillas under heat lamps.

(Source: Yahoo Finance)

Needless to say, the burrito math ain’t adding up… Revenue came in at $3 billion, just shy of expectations, with same-store sales up a measly 0.3%... which sounds okay until you realize that number was propped up by price hikes. Meaning: customers are spending more per order but showing up less.

Adjusted EPS was $0.29, in line with expectations, but Wall Street doesn’t give participation trophies (unless you have AI in your bio). This marks Chipotle’s third consecutive downgrade of its sales outlook. Earlier this year, they were projecting growth. Now they’re predicting a low-single-digit decline.

Then comes the sauce woes… In June, Chipotle launched its first new dip in five years (Adobo Ranch) and probably expected a viral TikTok wave of “ranch girlies” to save the quarter. Instead, analysts say the $1 sauce add-ons are hurting its value image.

Boatwright says Chipotle will “double down” on marketing, improve restaurant execution, and drop three to four limited-time protein options in 2026… pretty much the same generic playbook every restaurant uses when traffic drops. He also refused to discount menu prices, saying the brand won’t “chase value deals.” Which I kinda get. They don’t want to be compared to Taco Bell.

Even with this huge miss, the chain plans to open up to 370 new locations next year… including expansions into South Korea, the Middle East, and Mexico. But no amount of corporate cope or investor hopium can hide the fact that Chipotle’s once-unstoppable burrito machine is coughing up black smoke and rolling backward down the hill.

Boatwright (whose job is in serious jeopardy) insists the brand will bounce back with innovation and better marketing. But until someone figures out how to refinance student loans with rewards points, the burrito boom might stay on pause.

At the time of publishing this article, Stocks.News holds positions in Starbucks as mentioned in the article.