second quarter 2026
Filed Jul 29, 2026CHIPOTLE RAISES FULL YEAR COMPARABLE SALES GUIDANCE ON STRONG Q2 MOMENTUM
Total revenue increased 9.3% to $3.3 billion and comparable restaurant sales increased 2.2%, but operating margin declined to 15.7% from 18.2% and net income declined to $403.5 million from $436.1 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $3.3 billion | – | increased 9.3% |
| Comparable restaurant salesother | 2.2% | – | increased 2.2% |
| Average checkother | 1.2% | – | increase |
| Transactionsother | 1.0% | – | increase |
| Digital sales as a percentage of total food and beverage revenueother | 38.3% | – | – |
| Operating marginGAAP | 15.7% | – | a decrease |
| Restaurant level operating marginnon-GAAP | 25.2% | – | a decrease |
| Food, beverage and packaging costs as a percentage of total revenueGAAP | 29.7% | – | an increase |
| Labor costs as a percentage of total revenueGAAP | 25.0% | – | an increase |
| General and administrative expensesGAAP | $190.5 million | – | – |
| Adjusted general and administrative expensesnon-GAAP | $176.2 million | – | – |
| Effective income tax rateGAAP | 24.3% | – | a decrease |
| Net incomeGAAP | $403.5 million | – | – |
| Diluted earnings per shareGAAP | $0.32 per diluted share | – | remained flat |
| Adjusted net incomenon-GAAP | $418.9 million | – | – |
| Adjusted diluted earnings per sharenon-GAAP | $0.33 per adjusted diluted share | – | remained flat |
| Company-owned restaurant openingsother | 100 | – | – |
| Company-owned restaurant openings including a Chipotlaneother | 80 | – | – |
| International partner-operated restaurant openingsother | one | – | – |
| Restaurants as of June 30, 2026other | over 4,200 restaurants | – | – |
| Employeesother | nearly 140,000 employees | – | – |
For 2026 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
Capital returns
- During the second quarter of 2026 we repurchased $630.7 million of stock at an average price per share of $32.55.
- As of June 30, 2026, $1.7 billion remained available under share repurchase authorizations from our Board of Directors, including an additional $1.3 billion in authorizations approved by our Board of Directors on June 11, 2026.
What drove it
- The increase in total revenue was driven by new restaurant openings and, to a lesser extent, comparable restaurant sales.
- Comparable restaurant sales increased 2.2%, consisting of a 1.2% increase in average check and a 1.0% increase in transactions.
- Chipotlanes are helping enhance guest access and convenience, as well as increase new restaurant sales, margins and returns.
- Food, beverage and packaging costs increased due to inflation, primarily from beef and freight, and higher protein and produce usage.
- The food, beverage and packaging cost increases were partially offset by the benefit of menu price increases and lower avocado and dairy costs.
- Labor costs increased primarily because of higher employee compensation, including wage inflation and performance-based bonuses, and additional restaurant labor supporting operational execution, including hospitality initiatives.
- General and administrative expense growth was driven by legal reserves, performance bonuses, wages, and restructuring costs, partially offset by lower stock-based compensation.
Concerns
- Operating margin was 15.7%, a decrease from 18.2%.
- Restaurant level operating margin was 25.2%, a decrease from 27.4%.
- Food, beverage and packaging costs were 29.7% of total revenue, compared to 28.9%.
- Labor costs were 25.0% of total revenue, compared to 24.7%.
- Net income was $403.5 million, compared to $436.1 million.
- The release cites inflation primarily from beef and freight, wage inflation, legal reserves, performance bonuses, wages, and restructuring costs.
What to watch
- Full year comparable restaurant sales growth in the low single digit range.
- Execution toward 350 to 370 new restaurant openings, including 10 to 15 international partner-operated restaurants.
- Around 80% of new company-owned restaurants having a Chipotlane.
- The estimated underlying full year effective tax rate between 24% and 26% before discrete items.
- Food, beverage and packaging cost pressures from beef, freight, protein and produce usage, along with labor costs tied to compensation and hospitality initiatives.
Analysis
Chipotle reported second-quarter total revenue of $3.3 billion, up 9.3% year over year. Growth was led by new restaurant openings, with comparable restaurant sales contributing to a lesser extent. Comparable restaurant sales increased 2.2%, consisting of a 1.2% increase in average check and a 1.0% increase in transactions. Digital sales represented 38.3% of total food and beverage revenue, compared with 35.5% in the prior-year period.
Restaurant expansion remained substantial, with 100 company-owned restaurants opened during the quarter, including 80 with a Chipotlane, plus one international partner-operated restaurant. Management said Chipotlanes continue to enhance access and convenience and increase new restaurant sales, margins and returns. The company had over 4,200 restaurants as of June 30, 2026.
Margins were the central offset to revenue growth. Operating margin was 15.7%, down from 18.2%, while restaurant level operating margin was 25.2%, down from 27.4%. Food, beverage and packaging costs rose to 29.7% of total revenue from 28.9%, driven by inflation primarily from beef and freight and by higher protein and produce usage. Labor costs increased to 25.0% from 24.7%, reflecting higher compensation, including wage inflation and performance-based bonuses, as well as additional restaurant labor for operational execution and hospitality initiatives.
General and administrative expenses increased to $190.5 million from $172.2 million, with legal reserves, performance bonuses, wages and restructuring costs cited as drivers. Net income was $403.5 million compared with $436.1 million, although diluted earnings per share remained flat at $0.32. Adjusted net income was $418.9 million versus $450.4 million, and adjusted diluted earnings per share remained flat at $0.33. The effective income tax rate declined to 24.3% from 24.5%.
Capital allocation included $630.7 million of stock repurchases at an average price per share of $32.55. The company had $1.7 billion remaining under repurchase authorizations as of June 30, 2026, including an additional $1.3 billion approved on June 11, 2026. For 2026, management raised full-year comparable sales guidance to the low single digit range and continues to anticipate 350 to 370 new restaurant openings, including 10 to 15 international partner-operated restaurants, with around 80% of new company-owned restaurants expected to include a Chipotlane.
Management, verbatim
Our positive results reflect the momentum we're building as our Recipe for Growth strategy continues to take shape. We're seeing encouraging progress because we're focused on the right growth drivers—bringing meaningful menu innovation to our guests, deepening engagement through Chipotle Rewards, elevating hospitality in every restaurant, and expanding opportunities to serve more group occasions. These efforts are building a stronger business and reinforcing our confidence in Chipotle's ability to deliver sustainable long-term growth and shareholder value.
Scott Boatwright, Chief Executive Officer, Chipotle
Not in the filing
stated, not guessed- Prior-quarter figures for total revenue, comparable restaurant sales, margins, costs, general and administrative expenses, tax rate, net income, and earnings per share
- Gross profit and gross margin
- Operating income
- Cash balance
- Debt balance
- Operating cash flow
- Free cash flow
- Dividend information
- Segment revenue and segment profitability
- Prior outlook guidance for comparison
- Guidance for revenue, gross margin, and operating expenses
- Value of non-GAAP effective income tax rate
AlphaAI 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.