Chipotle’s third‑quarter results showed a rebound in traffic and same‑store sales, sending the stock up 7% in after‑hours trading.
Key points
- Chipotle’s stock rose 7% after the earnings release despite earnings per share missing expectations.
- Same‑store sales grew for the third consecutive quarter, driven in part by increased spending from low‑income consumers.
- Operating margins contracted, and earnings per share fell short of analyst forecasts.
- The company plans an aggressive rollout of 340‑360 new U.S. and Canadian restaurants and 15‑25 international sites in 2027.
Chipotle Mexican Grill posted mixed third‑quarter numbers for the period ending Sept. 30, 2026, but the burrito chain reported same‑store sales growth for the third straight quarter, prompting a 7% rise in its shares during extended trading, according to CNBC.
Adjusted earnings came in at 27 cents per share, short of the 29‑cent consensus, while revenue matched analysts’ expectations at $3.29 billion. Net income fell to $339.9 million from $382.1 million a year earlier, and the restaurant‑level operating margin slipped to 23.3% from 24.5%.
Quarterly financial performance
The company added 84 company‑owned restaurants and five international locations run by licensees during the quarter. Sales at stores open at least 13 months rose 2.1%, helped by a 1.3% increase in the average check. Notably, low‑income diners outperformed higher‑income customers, a shift the CEO said was not driven by promotions.
CEO Scott Boatwright told analysts that “broader consumer and industry headwinds may continue, but initiatives across our recipe for growth strategy are building and giving us more tools to win in any environment.” He added that the firm has “high confidence” in its performance for the rest of the fourth quarter, with CFO Adam Rymer projecting about 2% same‑store sales growth for Q4.
Restaurant expansion and consumer trends
For the full year, Chipotle reaffirmed its outlook for low‑single‑digit same‑store sales growth and outlined an expansion plan that targets 340‑360 new company‑owned locations in the U.S. and Canada and 15‑25 international restaurants in 2027.
Reader questions
What were Chipotle’s adjusted earnings per share for Q3 2026?
Adjusted earnings were 27 cents per share, compared with analysts’ expectation of 29 cents.
How many new company‑owned restaurants did Chipotle open in the quarter?
Chipotle opened 84 company‑owned restaurants and five international locations run by licensees.
What is Chipotle’s outlook for same‑store sales in the fourth quarter?
Chief Financial Officer Adam Rymer said the company expects fourth‑quarter same‑store sales growth of about 2%.
Source: cnbc.com
