Chipotle Extends Transaction Growth as Comps Cool

The Tip Desk · October 30, 2026 · 3 min read

Comparable restaurant sales rose 2.1% in the third quarter as transactions increased 0.8% and average check rose 1.3%.

Chipotle Mexican Grill (CMG) posted a third consecutive quarter of positive comparable restaurant sales growth, with transactions up 0.8% and average check up 1.3% in the three months ended September 30, 2026.

The quick-service restaurant operator said comparable sales growth slowed to 2.1% from 2.2% in the second quarter, after accelerating from 0.5% in the first quarter. Chief Executive Officer Scott Boatwright said three consecutive quarters of positive comparable transaction growth demonstrated that the company’s Recipe for Growth strategy is working.

Total revenue was $3.3 billion, up 9.6% from a year earlier, a faster year-over-year increase than the 9.3% rise in the second quarter and the 7.4% rise in the first quarter. The company said the increase was driven by new restaurant openings and, to a lesser extent, comparable restaurant sales.

Net income was $339.9 million, or $0.27 a share, compared with $382.1 million, or $0.29 a share, a year earlier. Adjusted diluted earnings were also $0.27 a share. Operating margin was 13.7%, down from 15.9% a year earlier. Restaurant level operating margin was 23.3%.

Food, beverage and packaging costs fell to 29.5% of total revenue from 30.0% a year earlier. The company said the decrease was primarily driven by menu price increases, tariff relief, and favorable limited-time offer mix, partially offset by inflation in beef and freight and higher protein usage. Labor costs were 25.7% of revenue. The company attributed the increase to lower sales volumes, higher employee compensation including wage inflation and performance-based bonuses, additional restaurant labor supporting promotional activities, and increased insurance costs, partially offset by menu price increases.

Digital sales represented 38.8% of total food and beverage revenue, up from 36.7% a year earlier.

Chipotle opened 84 company-owned restaurants in the third quarter, of which 53 included a Chipotlane, and five international partner-operated restaurants. The company said Chipotlanes continue to perform well and are helping enhance guest access and convenience, as well as increase new restaurant sales, margins and returns. Company-owned openings had been 100 in the second quarter and 49 in the first quarter. There were more than 4,200 restaurants as of September 30, 2026. Average restaurant sales were $3,106.

General and administrative expenses were $185.2 million, compared with $146.7 million a year earlier. The company said the increase was driven by stock-based compensation, performance bonuses, and outside services related to corporate initiatives. Adjusted general and administrative expenses were $183.8 million. The effective income tax rate was 25.6%, up from 23.1% a year earlier, which the company said was primarily due to an increase in nondeductible expenses and a reduction in tax credits.

During the quarter the company repurchased $110.0 million of stock at an average price of $34.05 a share. As of September 30, 2026, $1.6 billion remained available under share repurchase authorizations.

For 2026, management continues to anticipate full-year comparable restaurant sales growth in the low single digit range and 350 to 370 new restaurant openings, including 10 to 15 international partner-operated restaurants, with around 80% of new company-owned restaurants to have a Chipotlane. For 2027, management is anticipating 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.