Three consecutive declines! Mexican fast food chain Chipotle (CMG.US) has lowered sales expectations for three consecutive quarters, and its stock price has been halved this year.

Mexican fast food chain brand Chipotle (CMG.US) released its third-quarter report on Wednesday, Eastern time. This is the third consecutive quarter in which they have lowered their full-year sales forecast. The company is currently dealing with a decrease in customer traffic and economic pressure facing their core customer base. The data shows that Chipotle's total revenue in the third quarter was $3 billion, lower than the market expectation of $3.02 billion. Adjusted earnings per share were $0.29, in line with Wall Street expectations. Digital sales accounted for 36.7% of total food revenue. Comparable store sales increased by 0.3%, lower than the expected 1%. Menu price increases and higher average check size offset some of the impact of decreased customer traffic. In the third-quarter financial report, the company stated that they expect comparable store sales to decline in the low single digits for the year. Wall Street had previously predicted a 0.7% decline in comparable store sales for the year, which was lower than Chipotle's prediction of "flat sales" in July, but still more conservative than the decline the company disclosed to investors this time. After the news was announced, Chipotle's stock price plummeted in after-hours trading on Wednesday, falling more than 16.5%. As of the end of Wednesday, the company's stock price has fallen by over 35% this year. CEO Scott Boatwright mentioned in the financial report that the chain brand continues to face "ongoing macroeconomic pressure." He further explained in an analyst conference call that the company's customer base "skews slightly younger," and this group is facing particularly noticeable pressure. "The 25-35 age group is facing challenges, especially," Boatwright said. "This group is facing multiple challenges, including rising unemployment, increased loan repayment pressure, and a slowdown in actual wage growth." In August of this year, the unemployment rate for the 20-24 age group in the United States was 9.2%, higher than the 7.9% from the same period last year. Boatwright pointed out that earlier this year, consumption among all income groups had fallen, and this trend has now widened. "The frequency of consumption for the middle and lower income groups has decreased even more," he said. It is reported that households with annual incomes of $100,000 or less account for approximately 40% of Chipotle's total sales. He then added that Chipotle expects the "first quarter to be the most difficult time for middle and lower income consumers." Boatwright stated that Chipotle is "working to enhance store operational efficiency," with specific measures including increased marketing spending, plans to create more digital consumer scenarios, and introducing more innovative initiatives. "As we advance this plan, we are confident that we can achieve sustained positive transaction growth (increased customer traffic)," he said.