Earnings

Chipotle Net Income Falls To $339.9 Million As Revenue Climbs 9.6% To $3.3 Billion

Operating margin fell to 13.7% from 15.9% in the third quarter, and Chipotle kept its 2026 outlook.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

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Chipotle Net Income Falls To $339.9 Million As Revenue Climbs 9.6% To $3.3 Billion

Chipotle Mexican Grill, the burrito chain, grew third-quarter revenue 9.6% to $3.3 billion, but net income fell to $339.9 million from $382.1 million a year earlier, the company said Wednesday. Diluted earnings per share slipped to $0.27 from $0.29, and operating margin narrowed to 13.7% from 15.9%.

Sales up, margin down

New restaurant openings drove the revenue gain and, to a lesser extent, so did comparable restaurant sales, which rose 2.1%. Average check rose 1.3% and transactions rose 0.8%, a third straight quarter of positive transaction growth, the company said.

Adjusted earnings per share also came in at $0.27, against $0.29 a year earlier. Restaurant-level operating margin, an adjusted measure, was 23.3%, down from 24.5%.

Labor cost rose to 25.7% of revenue from 25.2%. The company pointed to lower sales volumes, higher pay including wage inflation and performance bonuses, extra staffing for promotions, and higher insurance costs, partly offset by menu price increases.

General and administrative expenses climbed to $185.2 million from $146.7 million, on stock-based pay, performance bonuses and outside services tied to corporate initiatives. Food, beverage and packaging costs improved to 29.5% of revenue from 30.0%, helped by price increases, tariff relief and a favorable mix of limited-time offers. The effective tax rate rose to 25.6% from 23.1%.

Growth plans and buybacks

Chipotle owns and operates its restaurants, which serve burritos, bowls, tacos and salads. It opened 84 company-owned restaurants in the quarter, 53 with a drive-through Chipotlane, plus five partner-operated international sites. Digital orders were 38.8% of food and beverage revenue, up from 36.7% a year earlier.

CEO Scott Boatwright said the three quarters of positive transaction growth show the company's "Recipe for Growth strategy is working."

The company repurchased $110.0 million of stock at an average $34.05 a share in the quarter. About $1.6 billion remained under its buyback authorizations at September 30.

Outlook held for 2026

Management kept its 2026 outlook: comparable sales growth in the low single digits and 350 to 370 new restaurants, including 10 to 15 international partner-operated ones. For 2027 it anticipates 340 to 360 new company-owned openings in the U.S. and Canada, plus roughly 15 to 25 company-owned and partner-operated restaurants elsewhere.

Chipotle scheduled a conference call for 4:30 p.m. Eastern on Wednesday to discuss the quarter and give a business update for the fourth quarter to date.

Sources

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