Chipotle has been tweaking its recipe to lure diners back, and in the first quarter of the year it appears to be working.

The build-your-own burrito chain posted higher sales in its new quarterly earnings report, showing some signs of life after a record rough year. Chipotle reported that sales across established stores perked up by .5%, besting a predicted 1% decline. In the first three months of the year, the chain reported $302.8 million in net income, down from $386.6 million in the first quarter of 2025 – a period prior to its recent struggles.

Cost of living stress tied to high prices – and now the war in Iran – continues to steer price-conscious consumers away from restaurant dining. With little relief in sight, Chipotle and its peers are scrambling to develop a secret sauce so enticing that sales bounce back. For Chipotle, that’s meant reintroducing hit menu options like chicken al pastor, getting creative about boosting protein offerings (yes, that means chicken in a cup), and mixing things up with a limited time cilantro lime sauce. 

Last year, Chipotle found its core customers staying away. The company repeatedly cut its sales forecasts in 2025, leaving investors with a bad taste in their mouth when it came to the once-hot restaurant stock. In the second half of 2025, Chipotle shares plunged to their lowest price since 2023, erasing huge gains from 2024 and the first half of the year.

Chipotle builds loyalty with burrito lovers

Chipotle CEO Scott Boatwright pointed to economic concerns like “unemployment, increased student loan repayment, and slower real wage growth” that hit its core young diner demographic particularly hard in 2025. 

“We believe that this trend is not unique to Chipotle,” Boatwright said, noting that the phenomenon is taking a toll on restaurants more broadly. “We tend to skew younger and slightly over-indexed to this group relative to the broader restaurant industry,” Boatwright said.

Chipotle is still rebuilding some goodwill with customers suspicious that the burrito hub started skimping on its once-generous portions. The shrinkflation scandal took root on TikTok in 2024, which was particularly a problem given the chain’s young, plugged-in target demographic.

To right the ship, the company forged ahead with a plan to expand its brick and mortar footprint in 2026. Chipotle hopes to offset some of the costs associated with new store openings with perkier sales in new markets that don’t yet have an instance of the burrito chain. The company expects to break ground on as many as 370 new locations this year, including new restaurants in Singapore, South Korea, and even Mexico – a risky move for a purveyor of Americanized cuisine with Mexican roots. 

The chain is also revamping its rewards, redesigning the loyalty program to feel more like a game. Chipotle’s rewards program is key to its success, boasting 21 million active members who drive almost a third of the restaurant’s sales. Most of that happens in the company’s app, which features brand activations like “Freepotle,” which rewards dedicated burrito connoisseurs with perks like free guac. Chipotle’s refreshed loyalty program will offer more personalized rewards and achievements that take individual customer behavior into account, the company explained to Fast Company earlier this month.

Chipotle’s Chief Strategy and Technology Officer Curt Garner noted that the company looked beyond restaurants to brand loyalty success stories like Peloton in shaping the new rewards scheme. “We saw what some other brands were doing in places that lead culture and thought, ‘Let’s experiment with things that are similar.’”