third quarter 2026
Filed Oct 28, 2026COMPARABLE RESTAURANT SALES INCREASE 2.1% AS CHIPOTLE DELIVERS A THIRD CONSECUTIVE QUARTER OF POSITIVE TRANSACTION GROWTH
Total revenue increased 9.6% to $3.3 billion and comparable restaurant sales increased 2.1%, but operating margin declined to 13.7% from 15.9%, net income declined to $339.9 million from $382.1 million, and diluted earnings per share declined to $0.27 from $0.29.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30, 2026GAAP | $3.29B | – | 9.6% |
| Food and beverage revenue, three months ended September 30, 2026GAAP | $3.28B | – | – |
| Delivery service revenue, three months ended September 30, 2026GAAP | 15,220 | – | – |
| Comparable restaurant sales, three months ended September 30, 2026other | 2.1% | – | 2.1% |
| Average check, three months ended September 30, 2026other | 1.3% increase | – | 1.3% increase |
| Transactions, three months ended September 30, 2026other | 0.8% increase | – | 0.8% increase |
| Digital sales as percentage of total food and beverage revenue, three months ended September 30, 2026other | 38.8% | – | – |
| Food, beverage and packaging costs, three months ended September 30, 2026GAAP | 972,360 | – | – |
| Food, beverage and packaging costs as percentage of total revenue, three months ended September 30, 2026GAAP | 29.5% | – | – |
| Labor costs, three months ended September 30, 2026GAAP | 847,507 | – | – |
| Labor costs as percentage of total revenue, three months ended September 30, 2026GAAP | 25.7% | – | – |
| Occupancy costs, three months ended September 30, 2026GAAP | 179,403 | – | – |
| Other operating costs, three months ended September 30, 2026GAAP | 525,735 | – | – |
| General and administrative expenses, three months ended September 30, 2026GAAP | $185.2M | – | – |
| Adjusted general and administrative expenses, three months ended September 30, 2026non-GAAP | $183.8M | – | – |
| Depreciation and amortization, three months ended September 30, 2026GAAP | 102,611 | – | – |
| Pre-opening costs, three months ended September 30, 2026GAAP | 15,104 | – | – |
| Impairment, closure costs, and asset disposals, three months ended September 30, 2026GAAP | 13,250 | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | 2,841,198 | – | – |
| Income from operations, three months ended September 30, 2026GAAP | 451,964 | – | – |
| Operating margin, three months ended September 30, 2026GAAP | 13.7% | – | – |
| Interest and other income, net, three months ended September 30, 2026GAAP | 5,161 | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | 457,125 | – | – |
| Provision for income taxes, three months ended September 30, 2026GAAP | 117,251 | – | – |
| Effective income tax rate, three months ended September 30, 2026GAAP | 25.6% | – | – |
| Adjusted effective income tax rate, three months ended September 30, 2026non-GAAP | 25.6% | – | – |
| Net income, three months ended September 30, 2026GAAP | $339.9M | – | – |
| Adjusted net income, three months ended September 30, 2026non-GAAP | $344.6M | – | – |
| Diluted earnings per share, three months ended September 30, 2026GAAP | $ 0.27 | – | 6.9% decrease |
| Adjusted diluted earnings per share, three months ended September 30, 2026non-GAAP | $ 0.27 | – | 6.9% decrease |
| Basic earnings per share, three months ended September 30, 2026GAAP | $ 0.27 | – | – |
| Diluted weighted-average common shares outstanding, three months ended September 30, 2026GAAP | 1,267,703 | – | – |
| Restaurant level operating margin, three months ended September 30, 2026non-GAAP | 23.3% | – | – |
| Restaurant level operating margin, three months ended September 30, 2026non-GAAP | $768.2M | – | – |
| Total revenue, nine months ended September 30, 2026GAAP | 9,729,966 | – | – |
| Income from operations, nine months ended September 30, 2026GAAP | 1,374,622 | – | – |
| Operating margin, nine months ended September 30, 2026GAAP | 14.1% | – | – |
| Net income, nine months ended September 30, 2026GAAP | $1.05B | – | – |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $ 0.82 | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | 1,922,138 | – | – |
| Purchases of leasehold improvements, property and equipment, nine months ended September 30, 2026GAAP | (640,597) | – | – |
| Net cash used in investing activities, nine months ended September 30, 2026GAAP | (121,249) | – | – |
| Net cash used in financing activities, nine months ended September 30, 2026GAAP | (1,517,450) | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $634.2M | – | – |
| Investments, September 30, 2026GAAP | 268,354 | – | – |
| Long-term investments, September 30, 2026GAAP | 100,365 | – | – |
| Total assets, September 30, 2026GAAP | $9.43B | – | – |
| Total liabilities, September 30, 2026GAAP | 6,977,539 | – | – |
| Total shareholders' equity, September 30, 2026GAAP | 2,455,144 | – | – |
| Company-owned restaurants opened, three months ended September 30, 2026other | 84 | – | – |
| Company-owned restaurant total, three months ended September 30, 2026other | 4,267 | – | – |
| Average restaurant sales, three months ended September 30, 2026other | $3.11M | – | – |
| Partner-operated restaurants opened, three months ended September 30, 2026other | 5 | – | – |
| Partner-operated restaurant total, three months ended September 30, 2026other | 20 | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
For 2026 and For 2027 outlook
- Tax rateAn estimated underlying full year effective tax rate between 24% and 26% before discrete items
- NoteFull year comparable restaurant sales growth in the low single digit range
- Note350 to 370 new restaurant openings, which includes 10 to 15 international partner-operated restaurants
- NoteAround 80% of new company-owned restaurants will have a Chipotlane
- Note340 to 360 new company-owned restaurant openings in the U.S. and Canada
- NoteAround 15 to 25 company-owned and partner-operated restaurants outside the U.S. and Canada
Capital returns
- During the third quarter of 2026 we repurchased $110.0 million of stock at an average price per share of $34.05.
- As of September 30, 2026, $1.6 billion remained available under share repurchase authorizations from our Board of Directors.
- Repurchase of common stock for the nine months ended September 30, 2026 was (1,464,934), compared to (1,683,720) for the nine months ended September 30, 2025.
What drove it
- Total revenue growth was driven by new restaurant openings and, to a lesser extent, comparable restaurant sales.
- Comparable restaurant sales increased 2.1%, including a 1.3% increase in average check and a 0.8% increase in transactions.
- Food, beverage and packaging costs benefited from menu price increases, tariff relief, and favorable limited-time offer mix.
- Chipotlanes are helping enhance guest access and convenience, as well as increase new restaurant sales, margins and returns.
- The company opened 84 company-owned restaurants, of which 53 included a Chipotlane, and five international partner-operated restaurants.
Concerns
- Operating margin was 13.7%, a decrease from 15.9%.
- Restaurant level operating margin was 23.3%, a decrease from 24.5%.
- Labor costs increased to 25.7% of total revenue from 25.2%, driven by lower sales volumes, higher employee compensation, additional restaurant labor supporting operational execution including promotional activities, and increased insurance costs.
- General and administrative expenses increased to $185.2 million from $146.7 million, driven by stock-based compensation, performance bonuses, and outside services related to corporate initiatives.
- The effective income tax rate increased to 25.6% from 23.1%, primarily due to an increase in nondeductible expenses and a reduction in tax credits.
- Net income was $339.9 million, compared to $382.1 million, while diluted earnings per share was $0.27, compared to $0.29.
What to watch
- Full year comparable restaurant sales growth in the low single digit range.
- Execution against 350 to 370 new restaurant openings in 2026, including 10 to 15 international partner-operated restaurants.
- The rollout of Chipotlanes, with around 80% of new company-owned restaurants expected to have a Chipotlane.
- The estimated underlying full year effective tax rate between 24% and 26% before discrete items.
- The planned 2027 development of 340 to 360 new company-owned restaurant openings in the U.S. and Canada and around 15 to 25 company-owned and partner-operated restaurants outside the U.S. and Canada.
Balance sheet and cash flow
- Cash and cash equivalents were $ 634,210 as of September 30, 2026, compared to $ 350,545 as of December 31, 2025.
- Investments were 268,354 and long-term investments were 100,365 as of September 30, 2026.
- Net cash provided by operating activities for the nine months ended September 30, 2026 was 1,922,138, compared to 1,688,082 for the nine months ended September 30, 2025.
- Purchases of leasehold improvements, property and equipment for the nine months ended September 30, 2026 were (640,597), compared to (468,881) for the nine months ended September 30, 2025.
- Cash, cash equivalents, and restricted cash at end of period were $ 670,009, compared to $ 729,636.
Analysis
Chipotle reported third-quarter total revenue of $3.3 billion, up 9.6% from the third quarter of 2025. New restaurant openings were the principal contributor, with comparable restaurant sales providing a smaller contribution. Comparable restaurant sales increased 2.1%, comprising 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, compared with 36.7% in the prior-year quarter.
Margin performance weakened despite revenue growth. Operating margin was 13.7%, compared with 15.9%, while restaurant level operating margin was 23.3%, compared with 24.5%. Food, beverage and packaging costs improved to 29.5% of total revenue from 30.0%, reflecting menu price increases, tariff relief and favorable limited-time offer mix. These benefits were partly offset by inflation in beef and freight and higher protein usage.
Labor and corporate costs were important drags. Labor costs rose to 25.7% of total revenue from 25.2%, driven by lower sales volumes, wage inflation, performance-based bonuses, promotional labor, and insurance costs. General and administrative expenses increased to $185.2 million from $146.7 million. The effective income tax rate rose to 25.6% from 23.1%. Consequently, net income declined to $339.9 million from $382.1 million and diluted earnings per share declined to $0.27 from $0.29.
Development remained active, with 84 company-owned openings, including 53 Chipotlanes, and five international partner-operated openings during the quarter. The company repurchased $110.0 million of stock at an average price per share of $34.05 and had $1.6 billion remaining under Board-authorized repurchase programs as of September 30, 2026. For the nine months ended September 30, 2026, net cash provided by operating activities was 1,922,138 and purchases of leasehold improvements, property and equipment were (640,597).
Management maintained its 2026 outlook for low single digit comparable restaurant sales growth, 350 to 370 new restaurant openings, and an estimated underlying full year effective tax rate between 24% and 26% before discrete items. The key reported tension is positive transaction growth and rapid unit development alongside lower operating and restaurant-level margins and lower year-over-year earnings per share.
Management, verbatim
Three consecutive quarters of positive comparable transaction growth demonstrates that our Recipe for Growth strategy is working.
Scott Boatwright, Chief Executive Officer, Chipotle
We're gaining traction with menu and digital innovation, making significant progress on our high-efficiency equipment rollout, and accelerating our global expansion with entry into three new markets this quarter.
Scott Boatwright, Chief Executive Officer, Chipotle
Not in the filing
stated, not guessed- Previous-release outlook and prior guidance comparisons were not provided.
- Gross margin was not reported.
- Free cash flow was not reported.
- Debt was not reported.
- Dividend information was not reported.
- Quarter-over-quarter changes for financial metrics were not reported.
- Revenue, gross margin, and operating-expense guidance were not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.