Chipotle shares plunge as investors chew on tariffs, weak spending

STORY: Shares of Chipotle Mexican Grill plunged as much as 22% Thursday morning to a more than 2-year low after it cut its sales forecast for the third time this year.The move fanned concerns around how the fast-casual chain is navigating tariffs, inflation and tighter spending by U.S. consumers.Consumer sentiment has remained stubbornly weak in recent months even though high-income consumers continue to prop up overall spending in the United States. Other companies across the retail spectrum have flagged how shoppers have been trading down from brand names to private labels or shifting to more affordable options like Walmart.Still, Chipotle's results caught investors by surprise, and analysts said its cost pressures could persist.Chipotle executives also pointed to a sharp pullback from U.S. households earning less than $100,000 a year, a group that accounts for about 40% of its sales and which the company categorizes as low- to middle-income.Its customers aged 25-35 years are also under pressure from rising unemployment, resumed student loan payments and sluggish wage growth.

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