Chipotle Sales Grow Again as Earnings Fall Short of Forecasts
WHO:
Chipotle - Chipotle Mexican Grill, Inc. reported third-quarter results; CEO Scott Boatwright said, “Three consecutive quarters of positive comparable transaction growth demonstrates that our Recipe for Growth strategy is working.”
CNBC - Chipotle reported its results, which CNBC compared with analyst estimates compiled by LSEG.
WHAT:
Yahoo Finance - Same-store sales rose 2.1%, above Wall Street’s 1.5% estimate.
Yahoo Finance - Chipotle’s stock rose roughly 7% in after-hours trading; its shares were down 20% year to date.
Yahoo Finance - CFO Adam Rymer said Chipotle raised prices 2.7% during the quarter to offset inflation.
Yahoo Finance - Chipotle plans to pilot AI-enabled demand-forecasting tools at 500 restaurants early next year and plans to add more beverages.
Chipotle - Third-quarter revenue rose 9.6% year over year to $3.293 billion, compared with $3.003 billion.
CNBC - Adjusted earnings per share were 27 cents, below Wall Street’s 29-cent estimate; revenue of $3.29 billion matched the $3.29 billion estimate.
Chipotle - Comparable restaurant sales increased 2.1%, including a 1.3% increase in average check and a 0.8% increase in transactions.
Chipotle - Digital sales were 38.8% of food and beverage revenue, up from 36.7% in the comparable quarter.
Chipotle - Net income was $339.9 million, or 27 cents per diluted share, down from $382.1 million, or 29 cents, a year earlier. Adjusted net income was $344.6 million, or 27 cents per adjusted diluted share, versus $389.9 million, or 29 cents.
Chipotle - Operating margin declined to 13.7% from 15.9%; restaurant-level operating margin fell to 23.3% from 24.5%.
Chipotle - The company opened 84 company-owned restaurants, 53 with Chipotlanes, and five international partner-operated restaurants.
Chipotle - Food, beverage and packaging costs were 29.5% of revenue, down from 30.0%; labor costs were 25.7%, up from 25.2%.
Chipotle - General and administrative expenses rose to $185.2 million from $146.7 million. The effective tax rate increased to 25.6% from 23.1%.
Chipotle - The company repurchased $110 million of stock at an average price of $34.05 per share; $1.6 billion remained available under its repurchase authorization.
Chipotle - Management forecast low-single-digit comparable-sales growth and 350–370 restaurant openings for 2026, including 10–15 international partner-operated locations; about 80% of new company-owned restaurants were expected to have Chipotlanes.
Chipotle - For 2027, management projected 340–360 company-owned openings in the U.S. and Canada and around 15–25 company-owned and partner-operated locations outside those countries.
CNBC - CNBC reported that Chipotle had cited diner concern about raw lettuce and cyclospora, despite its supply not being linked to an outbreak, and that it temporarily removed jalapenos from Minnesota restaurants after a potential salmonella link was identified.
WHERE:
Chipotle - Chipotle announced its results from Newport Beach, California; it reported more than 4,200 restaurants across the United States, Canada, the United Kingdom, France, Germany, Mexico, the Middle East and South Korea.
CNBC - The jalapenos were temporarily removed from restaurants in Minnesota.
WHEN:
Chipotle - The reported quarter ended September 30, 2026.
Chipotle - The outlook covers 2026 and 2027.
CNBC - The report described the third straight quarter of comparable-sales growth and referenced sales concerns beginning in the second half of July and the jalapeno action in August.
WHY:
Yahoo Finance - Rymer said October sales trends had softened, consistent with the broader industry; he attributed the pricing increase to inflation.
HOW:
Yahoo Finance - CEO Scott Boatwright said lower-income customer groups outperformed higher-income groups for the first time that year, with the greatest strength in September, when promotions were at their lowest.
Yahoo Finance - Rymer said Chipotle would address inflation through measured, patient pricing and absorb temporary or transitory inflation increases.
(UPDATED October 29, 2026 04:07 UTC)
Chipotle’s comparable sales rose 2.1%, topping expectations and marking a third consecutive quarter of transaction growth, while revenue increased 9.6% to $3.293 billion. Adjusted earnings came in at 27 cents a share, below the 29-cent estimate, as operating margins narrowed; the company said it raised prices 2.7% to offset inflation, and its stock climbed about 7% in after-hours trading. Chipotle plans to test AI demand-forecasting tools at 500 restaurants early next year, expand its beverage offerings, and open 350 to 370 restaurants in 2026.
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(UPDATED October 29, 2026 01:17 UTC)
Chipotle’s third-quarter revenue climbed 9.6% to $3.293 billion, while comparable sales rose 2.1% for a third straight quarter of growth. Adjusted earnings were 27 cents a share, below analysts’ 29-cent estimate, as net income and operating margins declined from a year earlier. Chipotle said digital sales made up 38.8% of food and beverage revenue, and it expects low-single-digit comparable-sales growth and 350 to 370 restaurant openings in 2026.