Chipotle Reports Q3 2026 Earnings: Revenue Rises 9.6% to $3.3B as EPS Dips to $0.27

Financial Performance Overview

Chipotle Mexican Grill, Inc. filed Form 8-K under Item 2.02 and Item 9.01 disclosing its third-quarter financial results for the period ended September 30, 2026.

Key Financial Metrics

• Revenue Growth: Total revenue reached $3.293 billion, a 9.6% year-over-year increase compared to $3.003 billion in Q3 2025, supported primarily by new unit development and comparable restaurant sales growth.
• Comparable Restaurant Sales: Up 2.1% year-over-year, marking three consecutive quarters of positive transaction growth. The comp breakdown was composed of 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, up from 36.7% in the prior-year period.
• Operating Profitability: Operating income declined to $451.96 million (13.7% operating margin) compared to $477.17 million (15.9% margin) in Q3 2025.
• Restaurant-Level Margin: Decreased 120 basis points to 23.3%, down from 24.5% in Q3 2025.
• Net Income & EPS: Net income was $339.87 million, or $0.27 per diluted share, down 6.9% from $382.10 million ($0.29 per diluted share) in Q3 2025. Adjusted diluted EPS was also $0.27.

Cost Structure & Margin Pressures

• Food, Beverage & Packaging: 29.5% of revenue, improving 50 bps from 30.0% in Q3 2025, driven by menu price increases, tariff relief, and limited-time offer mix, partially offset by inflation in beef, freight, and protein usage.
• Labor Costs: Rose 50 bps to 25.7% of revenue compared to 25.2% in Q3 2025, pressured by lower unit volumes, wage inflation, bonuses, and higher insurance costs.
• General & Administrative (G&A): Increased to $185.2 million (5.6% of revenue) versus $146.7 million (4.9% of revenue) in Q3 2025, primarily due to stock-based compensation, corporate initiatives, and incentive bonuses. Adjusted G&A was $183.8 million.
• Effective Tax Rate: Increased to 25.6% from 23.1% in Q3 2025 due to higher nondeductible expenses and fewer tax credits.

Expansion & Capital Allocation

• Restaurant Network Expansion: Opened 84 company-owned locations (53 featuring Chipotlanes) and five international partner-operated restaurants. The total restaurant count surpassed 4,200.
• Share Buybacks: Repurchased $110.0 million in stock at an average share price of $34.05 during the quarter. $1.6 billion remains authorized for future repurchases.

FY 2026 & FY 2027 Outlook

• Full-Year 2026 Guidance:
  • Comparable restaurant sales: low single-digit growth.
  • Restaurant openings: 350 to 370 new locations (~80% of company-owned with Chipotlanes), including 10 to 15 partner-operated units.
  • Effective tax rate: 24% to 26% before discrete items.
• Full-Year 2027 Projections:
  • 340 to 360 new company-owned openings across the U.S. and Canada.
  • 15 to 25 openings outside North America.