Results
CHIPOTLE ANNOUNCES THIRD QUARTER 2026 RESULTS
COMPARABLE RESTAURANT SALES INCREASE 2.1% AS CHIPOTLE DELIVERS A THIRD CONSECUTIVE QUARTER OF POSITIVE TRANSACTION GROWTH
NEWPORT BEACH, Calif. – October 28, 2026 – Chipotle Mexican Grill, Inc. (NYSE: CMG) today reported financial results for its third quarter ended September 30, 2026.
Third quarter highlights, year over year:
Total revenue increased 9.6% to $3.3 billion
Comparable restaurant sales increased 2.1%
Operating margin was 13.7%, a decrease from 15.9%
Restaurant level operating margin 1 was 23.3%, a decrease from 24.5%
1Diluted earnings per share was $0.27, a 6.9% decrease from $0.29
3Adjusted diluted earnings per share 1 was $0.27, a 6.9% decrease from $0.29
Opened 84 company-owned restaurants, with 53 locations including a Chipotlane.
We also opened five international partner-operated restaurants.
“Three consecutive quarters of positive comparable transaction growth demonstrates that our Recipe for Growth strategy is working,” said Scott Boatwright, Chief Executive Officer, Chipotle.
“We're gaining traction with menu and digital innovation, making significant progress on our high-efficiency equipment rollout, and accelerating our global expansion with entry into three new markets this quarter.
These achievements reinforce our confidence in the strategy and our ability to execute as we build Chipotle into an iconic global brand.”
Results for the three months ended September 30, 2026:
5Total revenue in the third quarter of 2026 was $3.3 billion, an increase of 9.6% compared to the third quarter of 2025.
The increase was driven by new restaurant openings and, to a lesser extent, comparable restaurant sales.
Comparable restaurant sales increased 2.1%, including a 1.3% increase in average check and a 0.8% increase in transactions.
Digital sales represented 38.8% of total food and beverage revenue for the three months ended September 30, 2026, an increase from 36.7% for the three months ended September 30, 2025.
During the third quarter we opened 84 company-owned restaurants, of which 53 included a Chipotlane, and five international partner-operated restaurants.
Chipotlanes continue to perform well and are helping enhance guest access and convenience, as well as increase new restaurant sales, margins and returns.
4Food, beverage and packaging costs in the third quarter of 2026 were 29.5% of total revenue, a decrease from 30.0% in the third quarter of 2025.
The decrease was primarily driven by the benefit of menu price increases, tariff relief, and favorable limited-time offer mix.
These benefits were partially offset by inflation, primarily in beef and freight, and higher protein usage.
1 Restaurant level operating margin, adjusted diluted earnings per share, adjusted net income, adjusted general and administrative expenses, and non-GAAP effective income tax rate are non-GAAP financial measures.
Reconciliations to GAAP measures and further information are set forth in the table at the end of this press release.
8Labor costs in the third quarter of 2026 were 25.7% of total revenue, an increase from 25.2% in the third quarter of 2025.
The increase was primarily driven by lower sales volumes, higher employee compensation, including wage inflation and performance-based bonuses, additional restaurant labor supporting operational execution including promotional activities, and increased insurance costs.
These headwinds were partially offset by the benefit from menu price increases.
6General and administrative expenses for the third quarter of 2026 were $185.2 million, compared to $146.7 million in the third quarter of 2025.
The increase was driven by stock-based compensation, performance bonuses, and outside services related to corporate initiatives.
7Adjusted general and administrative expenses 1 for the third quarter of 2026 were $183.8 million, compared to $138.7 million in the third quarter of 2025.
2The effective income tax rate for the third quarter of 2026 was 25.6%, an increase from 23.1% in the third quarter of 2025.
The increase was primarily due to an increase in nondeductible expenses and a reduction in tax credits.
Net income for the third quarter of 2026 was $339.9 million, or $0.27 per diluted share, compared to $382.1 million, or $0.29 per diluted share, in the third quarter of 2025.
Adjusted net income 1 for the third quarter of 2026 was $344.6 million, or $0.27 per adjusted diluted share, compared to $389.9 million, or $0.29 per adjusted diluted share, in the third quarter of 2025.
During the third quarter of 2026 we repurchased $110.0 million of stock at an average price per share of $34.05.
As of September 30, 2026, $1.6 billion remained available under share repurchase authorizations from our Board of Directors.
The repurchase authorization may be modified, suspended or discontinued at any time.
More information will be available in our Quarterly Report on Form 10-Q, which will be filed with the Securities and Exchange Commission (the "SEC") in accordance with applicable rules.
Outlook
For 2026, management continues to anticipate the following:
Full year comparable restaurant sales growth in the low single digit range
350 to 370 new restaurant openings, which includes 10 to 15 international partner-operated restaurants.
Around 80% of new company-owned restaurants will have a Chipotlane
An estimated underlying full year effective tax rate between 24% and 26% before discrete items
For 2027, management is anticipating the following:
340 to 360 new company-owned restaurant openings in the U.S. and Canada
Around 15 to 25 company-owned and partner-operated restaurants outside the U.S. and Canada.
Definitions
The following definitions apply to these terms as used throughout this release:
Comparable restaurant sales, or sales comps, and comparable restaurant transactions , represent the change in period-over-period total revenue or transactions for company-owned restaurants in operation for at least 13 full calendar months.
Average restaurant sales refers to the average trailing 12-month food and beverage revenue for company-owned restaurants in operation for at least 12 full calendar months.
Restaurant level operating margin represents total revenue less direct restaurant operating costs, expressed as a percent of total revenue.
Digital sales represent food and beverage revenue for company-owned restaurants generated through the Chipotle website, Chipotle app or third-party delivery aggregators.
Digital sales include revenue deferrals associated with Chipotle Rewards.
Partner-operated restaurants represent Chipotle restaurants over which Chipotle does not have a controlling financial interest and for which Chipotle does not directly manage day-to-day operations.
This includes restaurants operated by third parties pursuant to license or franchise agreements and restaurants in which Chipotle holds a minority, non‑controlling ownership interest.
1 Restaurant level operating margin, adjusted diluted earnings per share, adjusted net income, adjusted general and administrative expenses, and non-GAAP effective income tax rate are non-GAAP financial measures.
Reconciliations to GAAP measures and further information are set forth in the table at the end of this press release.
In connection with the call, supplemental slides will be available on the company's website at ir.chipotle.com/presentations.
We use the investor relations section at ir.chipotle.com and newsroom section at newsroom.chipotle.com, as well as other portions of our website (together, our "website") and our LinkedIn profile as means to routinely distribute important or material, non-public information and for complying with our disclosure obligations under Regulation FD.
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Chipotle Mexican Grill, Inc. (NYSE: CMG) is cultivating a better world by serving responsibly sourced, classically-cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives.
There are over 4,200 restaurants as of September 30, 2026, in the United States, Canada, the United Kingdom, France, Germany, Mexico, the Middle East, and South Korea.
Chipotle is the only restaurant company of its size that owns and operates all its restaurants in the United States, Canada and Europe.
With nearly 140,000 employees passionate about providing a great guest experience, Chipotle is a longtime leader and innovator in the food industry.
Chipotle is committed to making its food more accessible to everyone while continuing to be a brand with a demonstrated purpose as it leads the way in digital, technology and sustainable business practices.
For more information or to place an order online, visit WWW.CHIPOTLE.COM .
These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in the statements, including but not limited to: wage inflation and state or local regulations mandating higher minimum wages; the competitive labor market, which impacts our ability to attract and retain qualified employees; the impact of any union organizing efforts and our responses to such efforts; increases in ingredient and other operating costs due to inflation, global conflicts, severe weather, our Food with Integrity philosophy, tariffs, or trade restrictions; intermittent supply shortages relating to our Food with Integrity philosophy, rapid expansion, limited time offerings, and supply chain disruptions; risks and impacts of food safety incidents and food-borne illnesses; our reliance on certain information technology systems and potential material failures, interruptions, or outages; risks that our investments in new technology and technological innovations may not generate returns; privacy and cybersecurity risks, including breaches, unauthorized access, theft, modification, destruction, or ransom of guest or employee personal or confidential information stored on our network or the network of third party providers; the impact of competition, including from sources outside the restaurant industry; the impact of government laws and regulations relating to our employees, employment practices, restaurant design and construction, and the sale of food or alcoholic beverages; our ability to achieve our planned growth, such as the costs and availability of suitable new restaurant sites, construction materials, and contractors and restaurant equipment; the expected costs and risks related to our international expansion, including through partner-operated restaurants in the Middle East, South Korea, and Mexico; our ability to achieve expected levels of comparable restaurant sales due to factors such as changes in guests' perceptions of our brand, including as a result of negative publicity or social media posts and decreased consumer spending or restaurant visits, or the inability to increase menu prices or realize the benefits of menu price increases; failure to meet market expectations for our financial performance or any announced guidance and the impact thereof; the potential impact of activist shareholder actions or tactics; failure to attract or retain key executive talent; the impact of our brand, marketing, promotional, advertising, and pricing strategies, digital platform and menu innovations; our reliance on third-party delivery services and the information technology infrastructure; and enforcement and litigation risks, including possible governmental actions and potential litigation related to food safety incidents, cybersecurity incidents, employment or privacy laws, advertising claims, contract disputes, or other matters.
In addition, many of the foregoing risks and uncertainties are, or could be, exacerbated by any worsening of the global business and macroeconomic environment or developments in the rapidly evolving capabilities of artificial intelligence and other advanced technologies.
These statements also are subject to other risk factors described from time to time in our SEC reports, including our annual report on Form 10-K and quarterly reports on Form 10-Q, all of which are available on the investor relations page of our website at ir.Chipotle.com.
CHIPOTLE MEXICAN GRILL, INC.
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