# Chipotle (CMG) Q2 2026 earnings

Results filed 2026-07-29 for the quarter ended 2026-06-30. Source page: https://earnings.opennash.com/companies/cmg/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1058090/000105809026000063/0001058090-26-000063-index.htm
> Summaries and transcripts are machine-generated and can contain errors.

## In brief

Chipotle's second quarter total revenue increased 9.3% to $3.3 billion with comparable restaurant sales up 2.2%, diluted EPS flat at $0.32 and operating margin of 15.7%, a decrease from 18.2%.

Chipotle grew total revenue 9.3% to $3.3 billion in the second quarter, driven mainly by new restaurant openings and, to a lesser extent, comparable sales up 2.2%. That was a 1.2% rise in average check and a 1.0% rise in transactions. Costs rose faster than sales, so operating margin fell to 15.7% from 18.2% and diluted EPS stayed flat at $0.32.
Management raised its full year comparable sales outlook to the low single digit range and still expects 350 to 370 new restaurant openings and a 24% to 26% underlying tax rate.

## Key numbers

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Total revenue | $3.3 billion | up 9.3% from a year ago | GAAP |
| Net income | $403.5 million | compared to $436.1 million a year ago | GAAP |
| Diluted EPS | $0.32 | flat from a year ago | GAAP |
| Adjusted diluted EPS | $0.33 | flat from a year ago | non-GAAP |
| Operating margin | 15.7% | a decrease from 18.2% | GAAP |
| Income from operations | $525,595 | compared to $559,057 a year ago | GAAP |
| Restaurant level operating margin | 25.2% | a decrease from 27.4% | non-GAAP |
| Comparable restaurant sales | 2.2% | consisting of a 1.2% increase in average check and a 1.0% increase in transactions |  |
| Operating cash flow (six months) | 1,332,003 | compared to 1,118,402 in the prior-year six months | GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Digital sales share of food and beverage revenue | 38.3% | an increase from 35.5% |
| Comparable restaurant transactions | 1.0% | increase |
| Company-owned restaurant openings | 100 | compared to 61 a year ago |
| Company-owned restaurants, end of period | 4,186 | compared to 3,839 a year ago |
| Average restaurant sales | $3,102 | compared to $3,142 a year ago |
| Partner-operated restaurants, end of period | 15 | compared to 5 a year ago |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| New restaurant openings | 2026 | 350 to 370 |
| Underlying effective tax rate before discrete items | 2026 | between 24% and 26% |

## Key takeaways

1. **Revenue grew 9.3% on new restaurants** Total revenue increased 9.3% to $3.3 billion, driven by new restaurant openings and, to a lesser extent, comparable restaurant sales.
2. **Comparable sales improved for second straight quarter** Comparable restaurant sales rose 2.2% versus 0.5% in the prior quarter, with transactions up 1.0% and average check up 1.2%.
3. **Margins fell as costs outpaced sales** Operating margin was 15.7% versus 18.2%, and restaurant level operating margin was 25.2% versus 27.4%, with food, beverage and packaging costs at 29.7% of revenue.
4. **Full year comp guidance raised** Management now expects full year comparable restaurant sales growth in the low single digit range, plus 350 to 370 new restaurant openings.
5. **Heavy buybacks continued, cash declined** Chipotle repurchased $630.7 million of stock at an average price per share of $32.55, and the Board added $1.3 billion in authorizations, leaving $1.7 billion available.

## Questions

**How did Chipotle's revenue and earnings do in Q2 2026?** Total revenue rose 9.3% to $3.3 billion, while net income was $403.5 million and diluted EPS was flat at $0.32. Adjusted diluted EPS was also flat at $0.33.
**Why did Chipotle's margins fall?** Operating margin fell to 15.7% from 18.2%. Food, beverage and packaging costs rose to 29.7% of revenue on beef and freight inflation, and labor rose to 25.0% on wages, bonuses and hospitality staffing.
**What is Chipotle's 2026 outlook?** Management raised its full year comparable sales outlook to the low single digit range. It expects 350 to 370 new restaurant openings and an underlying tax rate between 24% and 26%.
**Are customers visiting more often?** Comparable transactions increased 1.0% and average check rose 1.2%, for comparable sales growth of 2.2%. Digital sales were 38.3% of food and beverage revenue, up from 35.5%.
**How much is Chipotle returning to shareholders?** It repurchased $630.7 million of stock in the quarter at an average price of $32.55 per share. As of June 30, 2026, $1.7 billion remained available under authorizations, including an added $1.3 billion.