Chipotle Sees Dip in Visits as Diners Tighten Wallets

Chipotle has something to say about the current state of the economy.

Chipotle Mexican Grill Inc. shared their assessment of how diners are pulling back on eating out during their quarterly results call on April 23, per MarketWatch. Chief Executive Officer Scott Boatwright told analysts that the company noticed the trend beginning in February and the situation has not improved. 

Despite the downward trend in consumer spending, Boatwright tried to instill confidence in investors claiming, "that the Chipotle brand has never been stronger." Chipotle isn't the only restaurant chain feeling the pain, other brands, including McDonald’s and Taco Bell, are seeing fewer diners walk through their doors.

Chipotle restaurant workers fill orders for customers.

Joe Raedle/Getty Images

"Historically, fast-food chains have fared the best during recessions as diners seeking cheap meals trade down from full-service or fast-casual eateries... But last year’s pullback in consumer spending saw fast-food eateries hit hard," per CNBC. Americans are speaking loudly with their wallets, preferring to cook at home for their meals.

That's one of the reasons why the International Monetary Fund downgraded the economic forecast for the U.S. on April 22. It attributes the slowdown to "greater policy uncertainty, trade tensions, and softer demand momentum." The White House tariffs have scared some consumers enough that they are panic-buying goods like toilet paper, coffee, and even cars.

Even with the glum outlook, Chipotle's executive is standing strong.

He said in a statement to MarketWatch, "While our first-quarter results were impacted by several headwinds, including weather and a slowdown in consumer spending, our teams continue to make significant progress improving the execution in our restaurants, innovating our back of house, and building Chipotle into a global iconic brand."

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