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., Oct. 28, 2026 /PRNewswire/ -- Chipotle Mexican Grill, Inc. (NYSE: CMG) today reported financial results for its third quarter ended September 30, 2026.
Third quarter highlights, year over year:
"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:
Total 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.
Food, 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.
Labor 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.
General 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. Adjusted 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.
The 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:
For 2027, management is anticipating the following:
Definitions
The following definitions apply to these terms as used throughout this release:
Conference Call Details and Supplemental Slides
Chipotle will host a conference call on Wednesday, October 28, 2026, at 4:30 PM Eastern time to discuss third quarter 2026 financial results and provide a business update for the fourth quarter to date. In connection with the call, supplemental slides will be available on the company's website at ir.chipotle.com/presentations.
The conference call can be accessed live over the phone by dialing 1-888-317-6003 or, for international callers, by dialing 1-412-317-6061 and entering code: 6029014. The call will be webcast live on the company's website at ir.chipotle.com/events. An archived webcast will be available approximately one hour after the end of the call.
Available Information
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. Accordingly, investors and potential investors are encouraged to consult our website and this social media channel regularly for important information, in addition to following our press releases, filings with the SEC, and public conference calls and webcasts. You may sign up on our website to automatically receive e-mail alerts when we post financial information and issue press releases and to receive information about upcoming events. The information contained on, or that may be accessed through, our website, LinkedIn, and any corresponding applications of those sites, is not incorporated by reference into, and is not a part of, this release.
About Chipotle
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.
Forward-Looking Statements
Certain statements in this press release, in the October 28, 2026, conference call and in the supplemental slides for the call are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements under "Outlook," and about our anticipated full year 2026 comparable restaurant sales growth, the number of new company-owned and international partner-operated restaurant openings in 2026 and 2027, expected number of restaurants with Chipotlanes, and estimated underlying effective 2026 full year tax rate, as well as statements about the expected success of our "Recipe for Growth" strategy overall and its related initiatives, the impacts of pricing and inflation in 2026 and 2027, our future food, beverage, packaging, labor, general and administrative and other costs, future estimated tax rate and future long-term prospects. We use words such as "anticipate", "believe", "could", "should", "may", "approximately", "estimate", "confident", "assuming", "expect", "intend", "project", "target", "goal" and similar terms and phrases, including references to assumptions, to identify forward-looking statements. The forward-looking statements in this press release are based on currently available operating, financial and competitive information available to us as of the date of this release and speak only as of the date they are made. We assume no obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. 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.
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.
CHIPOTLE MEXICAN GRILL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
Three months ended September 30,
2026
2025
Food and beverage revenue
$ 3,277,942
99.5 %
$ 2,989,255
99.5 %
Delivery service revenue
15,220
0.5
14,189
0.5
Total revenue
3,293,162
100.0
3,003,444
100.0
Restaurant operating costs (exclusive of depreciation
and amortization shown separately below):
Food, beverage and packaging
972,360
29.5
902,445
30.0
Labor
847,507
25.7
756,669
25.2
Occupancy
179,403
5.4
158,314
5.3
Other operating costs
525,735
16.0
450,433
15.0
General and administrative expenses
185,228
5.6
146,742
4.9
Depreciation and amortization
102,611
3.1
90,524
3.0
Pre-opening costs
15,104
0.5
13,741
0.5
Impairment, closure costs, and asset disposals
13,250
0.4
7,404
0.2
Total operating expenses
2,841,198
86.3
2,526,272
84.1
Income from operations
451,964
13.7
477,172
15.9
Interest and other income, net
5,161
0.2
19,789
0.7
Income before income taxes
457,125
13.9
496,961
16.5
Provision for income taxes
117,251
3.6
114,858
3.8
Net income
$ 339,874
10.3 %
$ 382,103
12.7 %
Earnings per share:
Basic
$ 0.27
$ 0.29
Diluted
$ 0.27
$ 0.29
Weighted-average common shares outstanding:
Basic
1,265,427
1,335,000
Diluted
1,267,703
1,339,522
CHIPOTLE MEXICAN GRILL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
Nine months ended September 30,
2026
2025
Food and beverage revenue
$ 9,683,464
99.5 %
$ 8,896,840
99.5 %
Delivery service revenue
46,502
0.5
45,250
0.5
Total revenue
9,729,966
100.0
8,942,090
100.0
Restaurant operating costs (exclusive of depreciation
and amortization shown separately below):
Food, beverage and packaging
2,879,279
29.6
2,626,837
29.4
Labor
2,489,368
25.6
2,231,156
25.0
Occupancy
523,494
5.4
462,405
5.2
Other operating costs
1,506,142
15.5
1,294,257
14.5
General and administrative expenses
579,419
6.0
491,676
5.5
Depreciation and amortization
297,656
3.1
268,680
3.0
Pre-opening costs
43,109
0.4
32,561
0.4
Impairment, closure costs, and asset disposals
36,877
0.4
19,039
0.2
Total operating expenses
8,355,344
85.9
7,426,611
83.1
Income from operations
1,374,622
14.1
1,515,479
16.9
Interest and other income, net
21,580
0.2
60,397
0.7
Income before income taxes
1,396,202
14.3
1,575,876
17.6
Provision for income taxes
349,957
3.6
371,047
4.1
Net income
$ 1,046,245
10.8 %
$ 1,204,829
13.5 %
Earnings per share:
Basic
$ 0.82
$ 0.90
Diluted
$ 0.82
$ 0.89
Weighted-average common shares outstanding:
Basic
1,280,337
1,344,824
Diluted
1,282,875
1,350,159
CHIPOTLE MEXICAN GRILL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
September 30,
2026
December 31,
2025
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$ 634,210
$ 350,545
Accounts receivable, net
99,544
156,466
Inventory
48,867
49,508
Prepaid expenses and other current assets
121,068
120,450
Income tax receivable
-
91,393
Investments
268,354
698,591
Total current assets
1,172,043
1,466,953
Leasehold improvements, property and equipment, net
3,038,421
2,679,361
Long-term investments
100,365
197,123
Restricted cash
35,799
35,364
Operating lease assets
4,928,149
4,463,010
Other assets
135,967
130,781
Goodwill
21,939
21,939
Total assets
$ 9,432,683
$ 8,994,531
Liabilities and shareholders' equity
Current liabilities:
Accounts payable
$ 308,352
$ 212,813
Accrued payroll and benefits
247,661
250,126
Accrued liabilities
233,053
182,448
Unearned revenue
223,644
240,375
Current operating lease liabilities
321,557
302,380
Income tax payable
112,339
-
Total current liabilities
1,446,606
1,188,142
Long-term operating lease liabilities
5,277,474
4,773,434
Deferred income tax liabilities
169,145
125,674
Other liabilities
84,314
76,674
Total liabilities
6,977,539
6,163,924
Shareholders' equity:
Common stock, $0.01 par value, 11,500,000 shares authorized, 1,264,970 and
1,304,360 shares issued as of September 30, 2026 and December 31, 2025,
respectively
12,650
13,044
Additional paid-in capital
2,297,332
2,204,944
Accumulated other comprehensive loss
(9,311)
(7,289)
Retained earnings
154,473
619,908
Total shareholders' equity
2,455,144
2,830,607
Total liabilities and shareholders' equity
$ 9,432,683
$ 8,994,531
CHIPOTLE MEXICAN GRILL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine months ended
September 30,
2026
2025
Operating activities
Net income
$ 1,046,245
$ 1,204,829
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
297,656
268,680
Deferred income tax provision
43,477
94,285
Impairment, closure costs, and asset disposals
35,564
18,271
Provision for credit losses
(351)
(1,626)
Stock-based compensation expense
86,369
93,966
Other
3,268
7,571
Changes in operating assets and liabilities:
Accounts receivable
55,521
49,982
Inventory
443
2,408
Prepaid expenses and other current assets
(8,948)
(9,456)
Operating lease assets
254,125
235,619
Other assets
1,820
(4,487)
Accounts payable
47,386
29,304
Accrued payroll and benefits
(207)
(68,890)
Accrued liabilities
58,595
10,342
Unearned revenue
(5,141)
(23,514)
Income tax payable/receivable
203,679
(42,428)
Operating lease liabilities
(199,213)
(179,482)
Other long-term liabilities
1,850
2,708
Net cash provided by operating activities
1,922,138
1,688,082
Investing activities
Purchases of leasehold improvements, property and equipment
(640,597)
(468,881)
Purchases of investments
(7,562)
(15,719)
Maturities of investments
526,910
477,264
Net cash used in investing activities
(121,249)
(7,336)
Financing activities
Repurchase of common stock
(1,464,934)
(1,683,720)
Tax withholding on stock-based compensation awards
(56,662)
(48,558)
Other financing activities
4,146
2,976
Net cash used in financing activities
(1,517,450)
(1,729,302)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
661
(187)
Net change in cash, cash equivalents, and restricted cash
284,100
(48,743)
Cash, cash equivalents, and restricted cash at beginning of period
385,909
778,379
Cash, cash equivalents, and restricted cash at end of period
$ 670,009
$ 729,636
Supplemental disclosures of cash flow information
Income taxes paid (1)
$ 102,635
$ 319,004
Purchases of leasehold improvements, property and equipment accrued in accounts payable
and accrued liabilities
$ 138,947
$ 101,478
Repurchase of common stock accrued in accounts payable and accrued liabilities
$ 13,462
$ 15,685
(1)
Included in the income taxes paid amount for the nine months ended September 30, 2026, is $93,000 related to the purchase of
federal transferable energy credits for the 2026 tax year.
CHIPOTLE MEXICAN GRILL, INC.
SUPPLEMENTAL FINANCIAL AND OTHER DATA
(dollars in thousands)
(unaudited)
The following table details company-owned restaurant unit data for the periods indicated:
For the three months ended
Sep. 30,
2026
Jun. 30,
2026
Mar. 31,
2026
Dec. 31,
2025
Sep. 30,
2025
Opened
84
100
49
132
84
Permanent closures
-
(3)
(1)
(5)
(4)
Relocations
(3)
(1)
-
(1)
(3)
Total
4,267
4,186
4,090
4,042
3,916
Average restaurant sales
$ 3,106
$ 3,102
$ 3,094
$ 3,104
$ 3,132
Comparable restaurant sales increase/(decrease)
2.1 %
2.2 %
0.5 %
(2.5 %)
0.3 %
The following table details partner-operated restaurant unit data for the periods indicated:
For the three months ended
Sep. 30,
2026
Jun. 30,
2026
Mar. 31,
2026
Dec. 31,
2025
Sep. 30,
2025
Opened
5
1
-
7
2
Total
20
15
14
14
7
CHIPOTLE MEXICAN GRILL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Below are definitions of the non-GAAP financial measures in this release. The following tables provide a reconciliation of non-GAAP financial measures presented in this release to the most directly comparable financial measures calculated and presented in accordance with GAAP.
Adjusted net income is net income excluding restaurant asset impairment and stock-based compensation retention.
Adjusted diluted earnings per share is calculated by dividing adjusted net income by the diluted weighted-average number of common shares outstanding.
Adjusted general and administrative expenses are general and administrative expenses excluding expenses related to stock-based compensation expense for specified retention equity awards.
The adjusted effective income tax rate is the effective income tax rate adjusted to reflect the after-tax impact of non-GAAP adjustments.
Restaurant level operating margin is equal to the revenues generated by our restaurants less direct restaurant operating costs, which consist of food, beverage and packaging, labor, occupancy and other operating costs, expressed as a percent of total revenue. This performance measure primarily includes the costs that restaurant level managers can directly control and excludes other costs that are essential to conduct our business. Management uses restaurant level operating margin as a measure of restaurant performance. Management believes restaurant level operating margin is useful because it highlights trends in our core business that may not otherwise be apparent when relying solely on GAAP financial measures.
We present these non-GAAP measures to facilitate a meaningful evaluation of our operating performance across periods. These adjustments are intended to provide greater transparency of underlying performance and to allow investors to evaluate our business on the same basis as management, which uses these non-GAAP measures in evaluating our performance.
Our adjusted net income, adjusted diluted earnings per share, adjusted general and administrative expenses, adjusted effective income tax rate, and restaurant level operating margin measures may not be comparable to other companies' adjusted measures. These adjustments are not necessarily indicative of what our actual financial performance would have been during the periods presented and should be viewed in addition to, and not as an alternative to, our results prepared in accordance with GAAP. Further details regarding these adjustments are included in the tables below.
CHIPOTLE MEXICAN GRILL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Adjusted Net Income and Adjusted Diluted Earnings per Share
(in thousands, except per share amounts)
(unaudited)
Three months ended
September 30,
2026
2025
Net income
$ 339,874
$ 382,103
Non-GAAP adjustments:
Impairment and exit costs:
Restaurant asset impairment (1)
4,339
-
Stock-based compensation (2)
1,475
8,058
Total non-GAAP adjustments
5,814
8,058
Tax effect of non-GAAP adjustments above (3)
(1,108)
(298)
After tax impact of non-GAAP adjustments
4,706
7,760
Adjusted net income
$ 344,580
$ 389,863
Diluted weighted-average number of common shares outstanding
1,267,703
1,339,522
Diluted earnings per share
$ 0.27
$ 0.29
Adjusted diluted earnings per share
$ 0.27
$ 0.29
(1)
Operating lease asset and leasehold improvements, property, plant and equipment impairment charges and other expenses for restaurants due to closures, relocations, or underperformance.
(2)
Stock-based compensation for retention equity awards granted to certain executives in connection with the former CEO's departure.
(3)
Adjustments related to the tax effect of non-GAAP adjustments, which were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates.
CHIPOTLE MEXICAN GRILL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Adjusted General and Administrative Expenses
(in thousands)
(unaudited)
Three months ended
September 30,
2026
2025
General and administrative expenses
$ 185,228
$ 146,742
Non-GAAP adjustments:
Stock-based compensation (1)
(1,475)
(8,058)
Total non-GAAP adjustments
(1,475)
(8,058)
Adjusted general and administrative expenses
$ 183,753
$ 138,684
(1)
Stock-based compensation for retention equity awards granted to certain executives in connection with the former CEO's departure.
CHIPOTLE MEXICAN GRILL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Adjusted Effective Income Tax Rate
(unaudited)
Three months ended
September 30,
2026
2025
Effective income tax rate
25.6 %
23.1 %
Tax impact of non-GAAP adjustments (1)
-
(0.3)
Adjusted effective income tax rate
25.6 %
22.8 %
(1)
Adjustments related to the tax effect of non-GAAP adjustments, which were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates.
CHIPOTLE MEXICAN GRILL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Restaurant Level Operating Margin
(in thousands)
(unaudited)
Three months ended September 30,
2026
Percent of
total revenue
2025
Percent of
total revenue
Income from operations
$ 451,964
13.7 %
$ 477,172
15.9 %
Non-GAAP Adjustments
General and administrative expenses
185,228
5.6
146,742
4.9
Depreciation and amortization
102,611
3.1
90,524
3.0
Pre-opening costs
15,104
0.5
13,741
0.5
Impairment, closure costs, and asset disposals
13,250
0.4
7,404
0.2
Total non-GAAP Adjustments
316,193
9.6
258,411
8.6
Restaurant level operating margin
$ 768,157
23.3 %
$ 735,583
24.5 %
SOURCE Chipotle Mexican Grill, Inc.