Taco Bell made two failed attempts to sell its American version of Mexican food to actual Mexicans. Here’s why Chipotle may do better.

Related: Chipotle responds to bankruptcy, store closure reports. The restaurant chain signed its first international development agreement in July 2023 with Alshaya Group to open

For the first time since 2020, Chipotle saw a decrease in quarterly same-store sales. CEO Scott Boatwright pointed to cautious consumers and a spending slowdown as the primary culprits for a sales dip and lower-than-expected quarterly revenues. Boatwright has previously said Chipotle would not raise its prices.

Chipotle Mexican Grill on Wednesday tempered its annual comparable sales growth forecast as sticky inflation and economic uncertainty force consumers to dine out less, sending the burrito chain’s shares down 3% after hours.

Chipotle Mexican Grill tempered its annual comparable sales growth forecast on Wednesday as the Trump administration's tariffs raise supply chain costs and fan economic uncertainty, prompting Americans to spend less on dining out.

Chipotle said Trump’s tariffs might raise its cost of sales by about 0.5% this year, which could translate to tens of millions of dollars in extra spending.