Key Highlights

  • Total revenue increased 9.6% to USD 3.29 billion, with comparable restaurant sales up 2.1% on a 0.8% transaction gain.
  • Diluted EPS was USD 0.27, down 6.9% from USD 0.29, and adjusted diluted EPS matched at USD 0.27.
  • Restaurant level operating margin was 23.3% against 24.5% a year ago, while operating margin slipped to 13.7%.
  • Chipotle opened 84 company-owned restaurants, including 53 with a Chipotlane, plus five international partner-operated locations.

Chipotle Mexican Grill, Inc. (NYSE:CMG) reported third-quarter 2026 total revenue of USD 3.29 billion, up 9.6% from USD 3.00 billion a year earlier and in line with a consensus estimate of USD 3.29 billion. Diluted earnings per share were USD 0.27, down 6.9% from USD 0.29 and below a consensus estimate of USD 0.29. Adjusted diluted EPS was also USD 0.27 against USD 0.29 in the prior-year quarter.

Net income was USD 339.9 million versus USD 382.1 million, and adjusted net income was USD 344.6 million. Comparable restaurant sales rose 2.1%, built from a 1.3% increase in average check and a 0.8% rise in transactions, the third straight quarter of positive transaction growth. Digital sales represented 38.8% of food and beverage revenue, up from 36.7%. CEO Scott Boatwright tied the results to the company's Recipe for Growth strategy and said it is gaining traction.

Cost Lines, Margins and Capital Returns

Food, beverage and packaging costs fell to 29.5% of revenue from 30.0%, helped by menu price increases, tariff relief and a favorable limited-time offer mix, partly offset by beef and freight inflation. Labor rose to 25.7% of revenue from 25.2% on lower sales volumes, wage inflation, promotional staffing and higher insurance costs. Management put other operating costs at 16.0% of revenue, up roughly 100 basis points on higher marketing, delivery mix and inflation. Operating margin fell to 13.7% from 15.9%, and the effective tax rate rose to 25.6% from 23.1%.

General and administrative expenses grew to USD 185.2 million from USD 146.7 million, driven by stock-based compensation, performance bonuses and outside services. The company repurchased USD 110.0 million of stock in the quarter at an average of USD 34.05 per share, with USD 1.6 billion remaining under authorization. It ended the quarter with USD 634.2 million in cash and no debt, and management described a mid-July industry slowdown that required promotional offers before trends normalized in late August.

Guidance and Fourth-Quarter Commentary

The company maintained 2026 guidance for low single-digit comparable sales growth, 350 to 370 new restaurant openings including 10 to 15 international partner-operated units, and an underlying tax rate of 24% to 26%. About 80% of new company-owned restaurants are projected to include a Chipotlane. For 2027, it projects 340 to 360 company-owned openings in the U.S. and Canada and 15 to 25 restaurants elsewhere.

On the call, the company's chief financial officer said October trends had softened in line with the wider industry and that fourth-quarter comparable sales are projected near 2%, with an exit rate of 3% to 4%. Fourth-quarter cost of sales is projected near 30.5% and restaurant margin just under 22%, reflecting the Smoked Brisket launch and higher marketing.

Signposts Ahead

Four datapoints stand out. Fourth-quarter comparable sales near 2% is the first, set against the 2.1% just reported. The second is restaurant level margin, at 23.3% in Q3 and guided to just under 22% for Q4. The third is equipment rollout: the high-efficiency package was installed in over 1,700 restaurants, with a target of approximately 2,000 by year end. The fourth is openings, with 84 company-owned units in Q3 against a 2026 target of 350 to 370 total openings, and Smoked Brisket returning the week after the call.