# Chipotle (CMG) Q3 2026 earnings

Results filed 2026-10-28 for the quarter ended 2026-09-30. Source page: https://earnings.opennash.com/companies/cmg/2026-q3/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1058090/000105809026000103/0001058090-26-000103-index.htm
> Summaries and transcripts are machine-generated and can contain errors.

## In brief

Chipotle's third quarter total revenue increased 9.6% to $3.3 billion, comparable restaurant sales increased 2.1%, and diluted earnings per share was $0.27, a 6.9% decrease from $0.29.

Chipotle grew sales 9.6% to $3.3 billion, mostly by opening new restaurants. Comparable restaurant sales rose 2.1%, with transactions up 0.8% for a third straight quarter. Profit fell, though. Operating margin dropped to 13.7% from 15.9%, and diluted earnings per share were $0.27 against $0.29 a year earlier. Higher labor, other operating costs and administrative spending outweighed lower food costs.
Management kept its 2026 outlook: low single digit comparable sales growth, 350 to 370 new restaurants and a 24% to 26% underlying tax rate. For 2027 it expects 340 to 360 company-owned openings in the U.S. and Canada. The main tension is that growth in sales and visits is not yet turning into higher profit, because costs are rising faster than revenue.

## Key numbers

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Total revenue | $3.3 billion | up 9.6% from a year ago | GAAP |
| Net income | $339.9 million | down from $382.1 million a year ago | GAAP |
| Diluted EPS | $0.27 | down 6.9% from $0.29 | GAAP |
| Adjusted diluted EPS | $0.27 | down 6.9% from $0.29 | non-GAAP |
| Operating margin | 13.7% | down from 15.9% | GAAP |
| Restaurant level operating margin | 23.3% | down from 24.5% | non-GAAP |
| Net cash provided by operating activities (nine months) | 1,922,138 |  | GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Comparable restaurant sales | 2.1% | up from 0.3% in the third quarter of 2025 |
| Comparable transactions | 0.8% | third consecutive quarter of positive transaction growth |
| Digital sales share of food and beverage revenue | 38.8% | up from 36.7% |
| Company-owned restaurants opened | 84 |  |
| Average restaurant sales | $3,106 | down from $3,132 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% |
| New company-owned restaurant openings in the U.S. and Canada | 2027 | 340 to 360 |
| Company-owned and partner-operated openings outside the U.S. and Canada | 2027 | 15 to 25 |

## Key takeaways

1. **Revenue grew 9.6% but profit fell** Total revenue rose to $3.3 billion, yet net income fell to $339.9 million from $382.1 million and diluted EPS was $0.27 versus $0.29.
2. **Third straight quarter of positive transactions** Comparable restaurant sales increased 2.1%, made up of a 1.3% increase in average check and a 0.8% increase in transactions.
3. **Operating margin fell to 13.7%** Operating margin was 13.7%, down from 15.9%. Labor rose to 25.7% of revenue from 25.2%, and other operating costs rose to 16.0% from 15.0%.
4. **Food cost ratio improved on pricing and tariff relief** Food, beverage and packaging costs were 29.5% of total revenue, down from 30.0%, helped by menu price increases, tariff relief and favorable limited-time offer mix.
5. **Full-year 2026 outlook unchanged; 2027 openings set** Management still expects low single digit comparable sales growth and 350 to 370 openings in 2026. It expects 340 to 360 company-owned openings in the U.S. and Canada in 2027.

## Questions

**What were Chipotle's main results for the third quarter of 2026?** Total revenue increased 9.6% to $3.3 billion and comparable restaurant sales increased 2.1%. Diluted earnings per share were $0.27, down 6.9% from $0.29 a year earlier.
**Why did Chipotle's operating margin decline?** Operating margin was 13.7%, down from 15.9%. Labor costs rose to 25.7% of revenue from 25.2%, other operating costs rose to 16.0% from 15.0%, and general and administrative expenses rose to $185.2 million from $146.7 million.
**How much of comparable sales growth came from traffic versus price?** Comparable restaurant sales rose 2.1%, with a 1.3% increase in average check and a 0.8% increase in transactions. It was the third consecutive quarter of positive transaction growth.
**What is Chipotle's outlook for 2026 and 2027?** For 2026 management expects low single digit comparable sales growth, 350 to 370 new restaurant openings and an underlying tax rate between 24% and 26%. For 2027 it expects 340 to 360 company-owned openings in the U.S. and Canada, plus around 15 to 25 restaurants elsewhere.
**How much did Chipotle spend on share repurchases?** Chipotle repurchased $110.0 million of stock at an average price per share of $34.05 in the third quarter. As of September 30, 2026, $1.6 billion remained available under its repurchase authorizations.