Shares of Chipotle Mexican Grill Inc. sank about 10% in extended trading Wednesday, after the companys same-restaurant sales declined in the second quarter by more than Wall Street was expecting.

The fast-casual Mexican restaurant chain also lowered its full-year outlook.

Chipotles same-restaurant sales declined 4%, surpassing the FactSet consensus analyst estimate of a 2.9% decline.

For the quarter ended June 30, revenue rose 3% to $3.1 billion, in line with the FactSet consensus estimate of $3.11 billion.

The Newport Beach, Calif.-based company earned an adjusted 33 cents a share, down from 34 cents a share in the prior years quarter. Analysts surveyed by FactSet were looking for earnings of 33 cents a share.

For 2025, Chipotle expects about flat full-year comparable-restaurant sales. The company had previously forecast full-year comparable-restaurant sales growth in the low-single-digit range.

Speaking during a conference call to discuss the results, Chipotle Chief Executive Scott Boatwright cited ongoing volatility and the consumer environment for the companys lowered outlook.

Chipotle saw a slowdown in May, although it did see momentum build as it rolled out its summer marketing initiatives and leaned into hospitality, the CEO said, according to a CallStreet transcript. However, exiting the quarter, the company returned to positive comparable sales and transactions, which have continued into July, he added.

But Boatwright described the second quarter as probably the worst U.S. aggregate storm conditions that the company could have faced.

We had extraordinary compares. We had declining consumer confidence, he noted. I think much of what were experiencing right now is due to macro and the consumer. The low-income consumer is looking for value as a price point at present.

I think as sentiment improves, the business will improve. he added.

Last quarter, Chipotle said that customers were cutting back on their spending. The company also saw a decline in same-restaurant sales.

Supermarket giant Kroger Co. recently said that, amid uncertainty over tariffs and the overall economic environment, many consumers are choosing to dine at home rather than eat out.

Chipotle shares have fallen 12.5% in 2025, compared with the S&P 500 indexs gain of 8.1%.