PR Contact: Laurie Schalow
EARNINGS RELEASE PR Contact: Laurie Schalow (949) 524-4035 MediaRelations@chipotle.com IR Contact: Christian D'Souza (949) 524-4075 Christian.DSouza@chipotle.com
COMPARABLE RESTAURANT SALES INCREASE 2.1% AS CHIPOTLE DELIVERS A THIRD CONSECUTIVE QUARTER OF POSITIVE TRANSACTION GROWTH NEWPORT BEACH, Calif. – October 28, 2026 – Chipotle Mexican Grill, Inc. (NYSE: CMG) today reported financial results for its third quarter ended September 30, 2026.
• Opened 84 company-owned restaurants, with 53 locations including a Chipotlane.
“Three consecutive quarters of positive comparable transaction growth demonstrates that our Recipe for Growth strategy is working,” said 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. These achievements reinforce our confidence in the strategy and our ability to execute as we build Chipotle into an iconic global brand.”
Total revenue in the third quarter of 2026 was $3.3 billion, an increase of 9.6% compared to the third quarter of 2025. The increase 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. Digital sales represented 38.8% of total food and beverage revenue for the three months ended September 30, 2026, an increase from 36.7% for the three months ended September 30, 2025.
During the third quarter we opened 84 company-owned restaurants, of which 53 included a Chipotlane, and five international partner-operated restaurants. Chipotlanes continue to perform well and are helping enhance guest access and convenience, as well as increase new restaurant sales, margins and returns.
Food, beverage and packaging costs in the third quarter of 2026 were 29.5% of total revenue, a decrease from 30.0% in the third quarter of 2025. The decrease was primarily driven by the benefit of menu price increases, tariff relief, and favorable limited-time offer mix. These benefits were partially offset by inflation, primarily in beef and freight, and higher protein usage.
1 Restaurant level operating margin, adjusted diluted earnings per share, adjusted net income, adjusted general and administrative expenses, and non-GAAP effective income tax rate are non-GAAP financial measures. Reconciliations to GAAP measures and further information are set forth in the table at the end of this press release.
Labor costs in the third quarter of 2026 were 25.7% of total revenue, an increase from 25.2% in the third quarter of 2025. The increase was primarily driven by lower sales volumes, higher employee compensation, including wage inflation and performance-based bonuses, additional restaurant labor supporting operational execution including promotional activities, and increased insurance costs. These headwinds were partially offset by the benefit from menu price increases.
General and administrative expenses for the third quarter of 2026 were $185.2 million, compared to $146.7 million in the third quarter of 2025. The increase was driven by stock-based compensation, performance bonuses, and outside services related to corporate initiatives. Adjusted general and administrative expenses 1 for the third quarter of 2026 were $183.8 million, compared to $138.7 million in the third quarter of 2025.
The effective income tax rate for the third quarter of 2026 was 25.6%, an increase from 23.1% in the third quarter of 2025. The increase was primarily due to an increase in nondeductible expenses and a reduction in tax credits.
Net income for the third quarter of 2026 was $339.9 million, or $0.27 per diluted share, compared to $382.1 million, or $0.29 per diluted share, in the third quarter of 2025. Adjusted net income 1 for the third quarter of 2026 was $344.6 million, or $0.27 per adjusted diluted share, compared to $389.9 million, or $0.29 per adjusted diluted share, in the third quarter of 2025.
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. The repurchase authorization may be modified, suspended or discontinued at any time.
More information will be available in our Quarterly Report on Form 10-Q, which will be filed with the Securities and Exchange Commission (the "SEC") in accordance with applicable rules.
• 350 to 370 new restaurant openings, which includes 10 to 15 international partner-operated restaurants. Around 80% of new company-owned restaurants will have a Chipotlane
• An estimated underlying full year effective tax rate between 24% and 26% before discrete items
• Around 15 to 25 company-owned and partner-operated restaurants outside the U.S. and Canada.
• Comparable restaurant sales, or sales comps, and comparable restaurant transactions , represent the change in period-over-period total revenue or transactions for company-owned restaurants in operation for at least 13 full calendar months.
refers to the average trailing 12-month food and beverage revenue for company- owned restaurants in operation for at least 12 full calendar months.
represents total revenue less direct restaurant operating costs, expressed as a percent of total revenue.
represent food and beverage revenue for company-owned restaurants generated through the Chipotle website, Chipotle app or third-party delivery aggregators. Digital sales include revenue deferrals associated with Chipotle Rewards.
represent Chipotle restaurants over which Chipotle does not have a controlling financial interest and for which Chipotle does not directly manage day-to-day operations. This includes restaurants operated by third parties pursuant to license or franchise agreements and restaurants in which Chipotle holds a minority, non‑controlling ownership interest.
1 Restaurant level operating margin, adjusted diluted earnings per share, adjusted net income, adjusted general and administrative expenses, and non-GAAP effective income tax rate are non-GAAP financial measures. Reconciliations to GAAP measures and further information are set forth in the table at the end of this press release.
Chipotle will host a conference call on Wednesday, October 28, 2026, at 4:30 PM Eastern time to discuss third quarter 2026 financial results and provide a business update for the fourth quarter to date. In connection with the call, supplemental slides will be available on the company's website at ir.chipotle.com/presentations.
The conference call can be accessed live over the phone by dialing 1-888-317-6003 or, for international callers, by dialing 1-412-317-6061 and entering code: 6029014. The call will be webcast live on the company's website at ir.chipotle.com/events. An archived webcast will be available approximately one hour after the end of the call.
We use the investor relations section at ir.chipotle.com and newsroom section at newsroom.chipotle.com, as well as other portions of our website (together, our "website") and our LinkedIn profile as means to routinely distribute important or material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors and potential investors are encouraged to consult our website and this social media channel regularly for important information, in addition to following our press releases, filings with the SEC, and public conference calls and webcasts. You may sign up on our website to automatically receive e-mail alerts when we post financial information and issue press releases and to receive information about upcoming events. The information contained on, or that may be accessed through, our website, LinkedIn, and any corresponding applications of those sites, is not incorporated by reference into, and is not a part of, this release.
Chipotle Mexican Grill, Inc. (NYSE: CMG) is cultivating a better world by serving responsibly sourced, classically-cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives. There are over 4,200 restaurants as of September 30, 2026, in the United States, Canada, the United Kingdom, France, Germany, Mexico, the Middle East, and South Korea. Chipotle is the only restaurant company of its size that owns and operates all its restaurants in the United States, Canada and Europe. With nearly 140,000 employees passionate about providing a great guest experience, Chipotle is a longtime leader and innovator in the food industry. Chipotle is committed to making its food more accessible to everyone while continuing to be a brand with a demonstrated purpose as it leads the way in digital, technology and sustainable business practices. For more information or to place an order online, visit WWW.CHIPOTLE.COM .
Certain statements in this press release, in the October 28, 2026, conference call and in the supplemental slides for the call are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements under “Outlook,” and about our anticipated full year 2026 comparable restaurant sales growth, the number of new company-owned and international partner-operated restaurant openings in 2026 and 2027, expected number of restaurants with Chipotlanes, and estimated underlying effective 2026 full year tax rate, as well as statements about the expected success of our “Recipe for Growth” strategy overall and its related initiatives, the impacts of pricing and inflation in 2026 and 2027, our future food, beverage, packaging, labor, general and administrative and other costs, future estimated tax rate and future long- term prospects. We use words such as “anticipate”, “believe”, “could”, “should”, “may”, “approximately”, “estimate”, “confident”, “assuming”, “expect”, “intend”, “project”, “target”, “goal” and similar terms and phrases, including references to assumptions, to identify forward-looking statements. The forward-looking statements in this press release are based on currently available operating, financial and competitive information available to us as of the date of this release and speak only as of the date they are made. We assume no obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in the statements, including but not limited to: wage inflation and state or local regulations mandating higher minimum wages; the competitive labor market, which impacts our ability to attract and retain qualified employees; the impact of any union organizing efforts and our responses to such efforts; increases in ingredient and other operating costs due to inflation, global conflicts, severe weather, our Food with Integrity philosophy, tariffs, or trade restrictions; intermittent supply shortages relating to our Food with Integrity philosophy, rapid expansion, limited time offerings, and supply chain disruptions; risks and impacts of food safety incidents and food-borne illnesses; our reliance on certain information technology systems and potential material failures, interruptions, or outages; risks that our investments in new technology and technological innovations may not generate returns; privacy and cybersecurity risks, including breaches, unauthorized access, theft, modification, destruction, or ransom of guest or employee personal or confidential information stored on our network or the network of third party providers; the impact of competition, including from sources outside the restaurant industry; the impact of government laws and regulations relating to our employees, employment practices, restaurant design and construction, and the sale of food or alcoholic beverages; our ability to achieve our planned growth, such as the costs and availability of suitable new restaurant sites, construction materials, and contractors and restaurant equipment; the expected costs and risks related to our international expansion, including through partner-operated restaurants in the Middle East, South Korea, and Mexico; our ability to achieve expected levels of comparable restaurant sales due to factors such as changes in guests' perceptions of our brand, including as a result of negative publicity or social media posts and decreased consumer spending or restaurant visits, or the inability to increase menu prices or realize the benefits of menu price increases; failure to meet market expectations for our financial performance or any announced guidance and the impact thereof; the potential impact of activist shareholder actions or tactics; failure to attract or retain key executive talent; the impact of our brand, marketing, promotional, advertising, and pricing strategies, digital platform and menu innovations; our reliance on third-party delivery services and the information technology infrastructure; and enforcement and litigation risks, including possible governmental actions and potential litigation related to food safety incidents, cybersecurity incidents, employment or privacy laws, advertising claims, contract disputes, or other matters. In addition, many of the foregoing risks and uncertainties are, or could be, exacerbated by any worsening of the global business and macroeconomic environment or developments in the rapidly evolving capabilities of artificial intelligence and other advanced technologies. These statements also are subject to other risk factors described from time to time in our SEC reports, including our annual report on Form 10-K and quarterly reports on Form 10-Q, all of which are available on the investor relations page of our website at ir.Chipotle.com.
September 30, December 31, 2026 2025 ────────────────────────────────────────────────────────────────────────────── -unaudited Assets Current assets: Cash and cash $ 634,210 $ 350,545 equivalents Accounts receivable, 99,544 156,466 net Inventory 48,867 49,508 Prepaid expenses and other current 121,068 120,450 assets Income tax receivable - 91,393 Investments 268,354 698,591 Total current assets 1,172,043 1,466,953 Leasehold improvements, 3,038,421 2,679,361 property and equipment, net Long-term investments 100,365 197,123 Restricted cash 35,799 35,364 Operating lease 4,928,149 4,463,010 assets Other assets 135,967 130,781 Goodwill 21,939 21,939 Total assets $ 9,432,683 $ 8,994,531 Liabilities and shareholders' equity Current liabilities: Accounts payable $ 308,352 $ 212,813 Accrued payroll and 247,661 250,126 benefits Accrued liabilities 233,053 182,448 Unearned revenue 223,644 240,375 Current operating 321,557 302,380 lease liabilities Income tax payable 112,339 - Total current 1,446,606 1,188,142 liabilities Long-term operating 5,277,474 4,773,434 lease liabilities Deferred income tax 169,145 125,674 liabilities Other liabilities 84,314 76,674 Total liabilities 6,977,539 6,163,924 Shareholders' equity: Common stock, $0.01 par value, 11,500,000 shares authorized, 1,264,970 and 1,304,360 shares 12,650 13,044 issued as of September 30, 2026 and December 31, 2025, respectively Additional paid-in 2,297,332 2,204,944 capital Accumulated other -9,311 -7,289 comprehensive loss Retained earnings 154,473 619,908 Total shareholders' 2,455,144 2,830,607 equity Total liabilities and shareholders' $ 9,432,683 $ 8,994,531 equity
Nine months ended September 30, Operating activities 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 1,046,245 $ 1,204,829 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and 297,656 268,680 amortization Deferred income tax 43,477 94,285 provision Impairment, closure costs, and asset 35,564 18,271 disposals Provision for credit -351 -1,626 losses Stock-based 86,369 93,966 compensation expense Other 3,268 7,571 Changes in operating assets and liabilities: Accounts receivable 55,521 49,982 Inventory 443 2,408 Prepaid expenses and other current -8,948 -9,456 assets Operating lease assets 254,125 235,619 Other assets 1,820 -4,487 Accounts payable 47,386 29,304 Accrued payroll and -207 -68,890 benefits Accrued liabilities 58,595 10,342 Unearned revenue -5,141 -23,514 Income tax 203,679 -42,428 payable/receivable Operating lease -199,213 -179,482 liabilities Other long-term 1,850 2,708 liabilities Net cash provided by operating 1,922,138 1,688,082 activities Investing activities Purchases of leasehold improvements, -640,597 -468,881 property and equipment Purchases of -7,562 -15,719 investments Maturities of 526,910 477,264 investments Net cash used in -121,249 -7,336 investing activities Financing activities Repurchase of common -1,464,934 -1,683,720 stock Tax withholding on stock-based -56,662 -48,558 compensation awards Other financing 4,146 2,976 activities Net cash used in -1,517,450 -1,729,302 financing activities Effect of exchange rate changes on cash, 661 -187 cash equivalents and restricted cash Net change in cash, cash equivalents, 284,100 -48,743 and restricted cash Cash, cash equivalents, and restricted 385,909 778,379 cash at beginning of period Cash, cash equivalents, and restricted $ 670,009 $ 729,636 cash at end of period Supplemental disclosures of cash flow information Income taxes paid(1) $ 102,635 $ 319,004 Purchases of leasehold improvements, property and equipment $ 138,947 $ 101,478 accrued in accounts payable and accrued liabilities Repurchase of common stock accrued in $ 13,462 $ 15,685 accounts payable and accrued liabilities (1)Included in the income taxes paid amount for the nine months ended September 30, 2026, is $93,000 related to the purchase of federal transferable energy credits for the 2026 tax year.
(unaudited) The following table details company-owned restaurant unit data for the periods indicated:
The following table details partner-operated restaurant unit data for the periods indicated:
Below are definitions of the non-GAAP financial measures in this release. The following tables provide a reconciliation of non-GAAP financial measures presented in this release to the most directly comparable financial measures calculated and presented in accordance with GAAP.
Adjusted net income is net income excluding restaurant asset impairment and stock-based compensation retention.
Adjusted diluted earnings per share is calculated by dividing adjusted net income by the diluted weighted-average number of common shares outstanding.
Adjusted general and administrative expenses are general and administrative expenses excluding expenses related to stock-based compensation expense for specified retention equity awards.
The adjusted effective income tax rate is the effective income tax rate adjusted to reflect the after-tax impact of non-GAAP adjustments.
Restaurant level operating margin is equal to the revenues generated by our restaurants less direct restaurant operating costs, which consist of food, beverage and packaging, labor, occupancy and other operating costs, expressed as a percent of total revenue. This performance measure primarily includes the costs that restaurant level managers can directly control and excludes other costs that are essential to conduct our business. Management uses restaurant level operating margin as a measure of restaurant performance. Management believes restaurant level operating margin is useful because it highlights trends in our core business that may not otherwise be apparent when relying solely on GAAP financial measures.
We present these non-GAAP measures to facilitate a meaningful evaluation of our operating performance across periods. These adjustments are intended to provide greater transparency of underlying performance and to allow investors to evaluate our business on the same basis as management, which uses these non-GAAP measures in evaluating our performance.
Our adjusted net income, adjusted diluted earnings per share, adjusted general and administrative expenses, adjusted effective income tax rate, and restaurant level operating margin measures may not be comparable to other companies’ adjusted measures. These adjustments are not necessarily indicative of what our actual financial performance would have been during the periods presented and should be viewed in addition to, and not as an alternative to, our results prepared in accordance with GAAP. Further details regarding these adjustments are included in the tables below.
Three months ended September 30, 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 339,874 $ 382,103 Non-GAAP adjustments: Impairment and exit costs: Restaurant asset 4,339 - impairment(1) Stock-based 1,475 8,058 compensation… Total non-GAAP 5,814 8,058 adjustments Tax effect of non-GAAP -1,108 -298 adjustments above(3) After tax impact of 4,706 7,760 non-GAAP adjustments Adjusted net $ 344,580 $ 389,863 income Diluted weighted-ave… number of 1,267,703 1,339,522 common shares outstanding Diluted earnings per $ 0.27 $ 0.29 share Adjusted diluted $ 0.27 $ 0.29 earnings per share
(1) Operating lease asset and leasehold improvements, property, plant and equipment impairment charges and other expenses for restaurants due to closures, relocations, or underperformance.
(2) Stock-based compensation for retention equity awards granted to certain executives in connection with the former CEO's departure.
(3) Adjustments related to the tax effect of non-GAAP adjustments, which were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates.
(1) Stock-based compensation for retention equity awards granted to certain executives in connection with the former CEO's departure.
Three months ended September 30, 2026 2025 Effective income tax rate 25.6 % 23.1 % Tax impact of non-GAAP - -0.3 adjustments(1) Adjusted effective income 25.6 % 22.8 % tax rate
(1) Adjustments related to the tax effect of non-GAAP adjustments, which were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates.
Full text with the tables
Exhibit 99.1
EARNINGS RELEASE
PR Contact: Laurie Schalow
(949) 524-4035
MediaRelations@chipotle.com
IR Contact: Christian D'Souza
(949) 524-4075
Christian.DSouza@chipotle.com
CHIPOTLE ANNOUNCES THIRD QUARTER 2026 RESULTS
COMPARABLE RESTAURANT SALES INCREASE 2.1% AS CHIPOTLE DELIVERS A THIRD
CONSECUTIVE QUARTER OF POSITIVE TRANSACTION GROWTH
NEWPORT BEACH, Calif. – October 28, 2026 – Chipotle Mexican Grill, Inc. (NYSE:
CMG) today reported financial results for its third quarter ended September 30,
2026.
Third quarter highlights, year over year:
• Total revenue increased 9.6% to $3.3 billion
• Comparable restaurant sales increased 2.1%
• Operating margin was 13.7%, a decrease from 15.9%
• Restaurant level operating margin 1 was 23.3%, a decrease from 24.5%
• Diluted earnings per share was $0.27, a 6.9% decrease from $0.29
• Adjusted diluted earnings per share 1 was $0.27, a 6.9% decrease from $0.29
• Opened 84 company-owned restaurants, with 53 locations including a Chipotlane.
We also opened five international partner-operated restaurants.
“Three consecutive quarters of positive comparable transaction growth
demonstrates that our Recipe for Growth strategy is working,” said 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. These achievements reinforce our confidence in the
strategy and our ability to execute as we build Chipotle into an iconic global
brand.”
Results for the three months ended September 30, 2026:
Total revenue in the third quarter of 2026 was $3.3 billion, an increase of 9.6%
compared to the third quarter of 2025. The increase 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. Digital sales represented 38.8% of total food
and beverage revenue for the three months ended September 30, 2026, an increase
from 36.7% for the three months ended September 30, 2025.
During the third quarter we opened 84 company-owned restaurants, of which 53
included a Chipotlane, and five international partner-operated restaurants.
Chipotlanes continue to perform well and are helping enhance guest access and
convenience, as well as increase new restaurant sales, margins and returns.
Food, beverage and packaging costs in the third quarter of 2026 were 29.5% of
total revenue, a decrease from 30.0% in the third quarter of 2025. The decrease
was primarily driven by the benefit of menu price increases, tariff relief, and
favorable limited-time offer mix. These benefits were partially offset by
inflation, primarily in beef and freight, and higher protein usage.
1 Restaurant level operating margin, adjusted diluted earnings per share,
adjusted net income, adjusted general and administrative expenses, and non-GAAP
effective income tax rate are non-GAAP financial measures. Reconciliations to
GAAP measures and further information are set forth in the table at the end of
this press release.
Labor costs in the third quarter of 2026 were 25.7% of total revenue, an
increase from 25.2% in the third quarter of 2025. The increase was primarily
driven by lower sales volumes, higher employee compensation, including wage
inflation and performance-based bonuses, additional restaurant labor supporting
operational execution including promotional activities, and increased insurance
costs. These headwinds were partially offset by the benefit from menu price
increases.
General and administrative expenses for the third quarter of 2026 were $185.2
million, compared to $146.7 million in the third quarter of 2025. The increase
was driven by stock-based compensation, performance bonuses, and outside
services related to corporate initiatives. Adjusted general and administrative
expenses 1 for the third quarter of 2026 were $183.8 million, compared to $138.7
million in the third quarter of 2025.
The effective income tax rate for the third quarter of 2026 was 25.6%, an
increase from 23.1% in the third quarter of 2025. The increase was primarily due
to an increase in nondeductible expenses and a reduction in tax credits.
Net income for the third quarter of 2026 was $339.9 million, or $0.27 per
diluted share, compared to $382.1 million, or $0.29 per diluted share, in the
third quarter of 2025. Adjusted net income 1 for the third quarter of 2026 was
$344.6 million, or $0.27 per adjusted diluted share, compared to $389.9 million,
or $0.29 per adjusted diluted share, in the third quarter of 2025.
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. The repurchase authorization may be modified, suspended or
discontinued at any time.
More information will be available in our Quarterly Report on Form 10-Q, which
will be filed with the Securities and Exchange Commission (the "SEC") in
accordance with applicable rules.
Outlook
For 2026, management continues to anticipate the following:
• Full year comparable restaurant sales growth in the low single digit range
• 350 to 370 new restaurant openings, which includes 10 to 15 international
partner-operated restaurants. Around 80% of new company-owned restaurants will
have a Chipotlane
• An estimated underlying full year effective tax rate between 24% and 26%
before discrete items
For 2027, management is anticipating the following:
• 340 to 360 new company-owned restaurant openings in the U.S. and Canada
• Around 15 to 25 company-owned and partner-operated restaurants outside the
U.S. and Canada.
Definitions
The following definitions apply to these terms as used throughout this release:
• Comparable restaurant sales, or sales comps, and comparable restaurant
transactions , represent the change in period-over-period total revenue or
transactions for company-owned restaurants in operation for at least 13 full
calendar months.
•
Average restaurant sales
refers to the average trailing 12-month food and beverage revenue for company-
owned restaurants in operation for at least 12 full calendar months.
•
Restaurant level operating margin
represents total revenue less direct restaurant operating costs, expressed as a
percent of total revenue.
•
Digital sales
represent food and beverage revenue for company-owned restaurants generated
through the Chipotle website, Chipotle app or third-party delivery aggregators.
Digital sales include revenue deferrals associated with Chipotle Rewards.
•
Partner-operated restaurants
represent Chipotle restaurants over which Chipotle does not have a controlling
financial interest and for which Chipotle does not directly manage day-to-day
operations. This includes restaurants operated by third parties pursuant to
license or franchise agreements and restaurants in which Chipotle holds a
minority, non‑controlling ownership interest.
1 Restaurant level operating margin, adjusted diluted earnings per share,
adjusted net income, adjusted general and administrative expenses, and non-GAAP
effective income tax rate are non-GAAP financial measures. Reconciliations to
GAAP measures and further information are set forth in the table at the end of
this press release.
Conference Call Details and Supplemental Slides
Chipotle will host a conference call on Wednesday, October 28, 2026, at 4:30 PM
Eastern time to discuss third quarter 2026 financial results and provide a
business update for the fourth quarter to date. In connection with the call,
supplemental slides will be available on the company's website at
ir.chipotle.com/presentations.
The conference call can be accessed live over the phone by dialing
1-888-317-6003 or, for international callers, by dialing 1-412-317-6061 and
entering code: 6029014. The call will be webcast live on the company's website
at ir.chipotle.com/events. An archived webcast will be available approximately
one hour after the end of the call.
Available Information
We use the investor relations section at ir.chipotle.com and newsroom section at
newsroom.chipotle.com, as well as other portions of our website (together, our
"website") and our LinkedIn profile as means to routinely distribute important
or material, non-public information and for complying with our disclosure
obligations under Regulation FD. Accordingly, investors and potential investors
are encouraged to consult our website and this social media channel regularly
for important information, in addition to following our press releases, filings
with the SEC, and public conference calls and webcasts. You may sign up on our
website to automatically receive e-mail alerts when we post financial
information and issue press releases and to receive information about upcoming
events. The information contained on, or that may be accessed through, our
website, LinkedIn, and any corresponding applications of those sites, is not
incorporated by reference into, and is not a part of, this release.
About Chipotle
Chipotle Mexican Grill, Inc. (NYSE: CMG) is cultivating a better world by
serving responsibly sourced, classically-cooked, real food with wholesome
ingredients without artificial colors, flavors or preservatives. There are over
4,200 restaurants as of September 30, 2026, in the United States, Canada, the
United Kingdom, France, Germany, Mexico, the Middle East, and South Korea.
Chipotle is the only restaurant company of its size that owns and operates all
its restaurants in the United States, Canada and Europe. With nearly 140,000
employees passionate about providing a great guest experience, Chipotle is a
longtime leader and innovator in the food industry. Chipotle is committed to
making its food more accessible to everyone while continuing to be a brand with
a demonstrated purpose as it leads the way in digital, technology and
sustainable business practices. For more information or to place an order
online, visit WWW.CHIPOTLE.COM .
Forward-Looking Statements
Certain statements in this press release, in the October 28, 2026, conference
call and in the supplemental slides for the call are forward-looking statements
as defined in the Private Securities Litigation Reform Act of 1995, including
statements under “Outlook,” and about our anticipated full year 2026 comparable
restaurant sales growth, the number of new company-owned and international
partner-operated restaurant openings in 2026 and 2027, expected number of
restaurants with Chipotlanes, and estimated underlying effective 2026 full year
tax rate, as well as statements about the expected success of our “Recipe for
Growth” strategy overall and its related initiatives, the impacts of pricing and
inflation in 2026 and 2027, our future food, beverage, packaging, labor, general
and administrative and other costs, future estimated tax rate and future long-
term prospects. We use words such as “anticipate”, “believe”, “could”, “should”,
“may”, “approximately”, “estimate”, “confident”, “assuming”, “expect”, “intend”,
“project”, “target”, “goal” and similar terms and phrases, including references
to assumptions, to identify forward-looking statements. The forward-looking
statements in this press release are based on currently available operating,
financial and competitive information available to us as of the date of this
release and speak only as of the date they are made. We assume no obligation to
update these forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by applicable law. These
statements are subject to risks and uncertainties that could cause actual
results to differ materially from those described in the statements, including
but not limited to: wage inflation and state or local regulations mandating
higher minimum wages; the competitive labor market, which impacts our ability to
attract and retain qualified employees; the impact of any union organizing
efforts and our responses to such efforts; increases in ingredient and other
operating costs due to inflation, global conflicts, severe weather, our Food
with Integrity philosophy, tariffs, or trade restrictions; intermittent supply
shortages relating to our Food with Integrity philosophy, rapid expansion,
limited time offerings, and supply chain disruptions; risks and impacts of food
safety incidents and food-borne illnesses; our reliance on certain information
technology systems and potential material failures, interruptions, or outages;
risks that our investments in new technology and technological innovations may
not generate returns; privacy and cybersecurity risks, including breaches,
unauthorized access, theft, modification, destruction, or ransom of guest or
employee personal or confidential information stored on our network or the
network of third party providers; the impact of competition, including from
sources outside the restaurant industry; the impact of government laws and
regulations relating to our employees, employment practices, restaurant design
and construction, and the sale of food or alcoholic beverages; our ability to
achieve our planned growth, such as the costs and availability of suitable new
restaurant sites, construction materials, and contractors and restaurant
equipment; the expected costs and risks related to our international expansion,
including through partner-operated restaurants in the Middle East, South Korea,
and Mexico; our ability to achieve expected levels of comparable restaurant
sales due to factors such as changes in guests' perceptions of our brand,
including as a result of negative publicity or social media posts and decreased
consumer spending or restaurant visits, or the inability to increase menu prices
or realize the benefits of menu price increases; failure to meet market
expectations for our financial performance or any announced guidance and the
impact thereof; the potential impact of activist shareholder actions or tactics;
failure to attract or retain key executive talent; the impact of our brand,
marketing, promotional, advertising, and pricing strategies, digital platform
and menu innovations; our reliance on third-party delivery services and the
information technology infrastructure; and enforcement and litigation risks,
including possible governmental actions and potential litigation related to food
safety incidents, cybersecurity incidents, employment or privacy laws,
advertising claims, contract disputes, or other matters. In addition, many of
the foregoing risks and uncertainties are, or could be, exacerbated by any
worsening of the global business and macroeconomic environment or developments
in the rapidly evolving capabilities of artificial intelligence and other
advanced technologies. These statements also are subject to other risk factors
described from time to time in our SEC reports, including our annual report on
Form 10-K and quarterly reports on Form 10-Q, all of which are available on the
investor relations page of our website at ir.Chipotle.com.
CHIPOTLE MEXICAN GRILL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
Three
months
ended
Septe…
30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Food
and $ 3,277… 99.5 % $ 2,989… 99.5 %
beve…
reve…
Deli…
serv… 15,220 0.5 14,189 0.5
reve…
Total 3,293… 100.0 3,003… 100.0
reve…
Rest…
oper…
costs
(exc…
of
depr…
and
amor…
shown
sepa…
belo…
Food,
beve… 972,3… 29.5 902,4… 30.0
and
pack…
Labor 847,5… 25.7 756,6… 25.2
Occu… 179,4… 5.4 158,3… 5.3
Other
oper… 525,7… 16.0 450,4… 15.0
costs
Gene…
and 185,2… 5.6 146,7… 4.9
admi…
expe…
Depr…
and 102,6… 3.1 90,524 3.0
amor…
Pre-… 15,104 0.5 13,741 0.5
costs
Impa…
clos…
cost… 13,250 0.4 7,404 0.2
and
asset
disp…
Total
oper… 2,841… 86.3 2,526… 84.1
expe…
Inco…
from 451,9… 13.7 477,1… 15.9
oper…
Inte…
and
other 5,161 0.2 19,789 0.7
inco…
net
Inco…
befo… 457,1… 13.9 496,9… 16.5
inco…
taxes
Prov…
for 117,2… 3.6 114,8… 3.8
inco…
taxes
Net $ 339,8… 10.3 % $ 382,1… 12.7 %
inco…
Earn…
per
shar…
Basic $ 0.27 $ 0.29
Dilu… $ 0.27 $ 0.29
Weig…
comm…
shar…
outs…
Basic 1,265… 1,335…
Dilu… 1,267… 1,339…
CHIPOTLE MEXICAN GRILL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
Nine
months
ended
Septe…
30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Food
and $ 9,683… 99.5 % $ 8,896… 99.5 %
beve…
reve…
Deli…
serv… 46,502 0.5 45,250 0.5
reve…
Total 9,729… 100.0 8,942… 100.0
reve…
Rest…
oper…
costs
(exc…
of
depr…
and
amor…
shown
sepa…
belo…
Food,
beve… 2,879… 29.6 2,626… 29.4
and
pack…
Labor 2,489… 25.6 2,231… 25.0
Occu… 523,4… 5.4 462,4… 5.2
Other
oper… 1,506… 15.5 1,294… 14.5
costs
Gene…
and 579,4… 6.0 491,6… 5.5
admi…
expe…
Depr…
and 297,6… 3.1 268,6… 3.0
amor…
Pre-… 43,109 0.4 32,561 0.4
costs
Impa…
clos…
cost… 36,877 0.4 19,039 0.2
and
asset
disp…
Total
oper… 8,355… 85.9 7,426… 83.1
expe…
Inco…
from 1,374… 14.1 1,515… 16.9
oper…
Inte…
and
other 21,580 0.2 60,397 0.7
inco…
net
Inco…
befo… 1,396… 14.3 1,575… 17.6
inco…
taxes
Prov…
for 349,9… 3.6 371,0… 4.1
inco…
taxes
Net $ 1,046… 10.8 % $ 1,204… 13.5 %
inco…
Earn…
per
shar…
Basic $ 0.82 $ 0.90
Dilu… $ 0.82 $ 0.89
Weig…
comm…
shar…
outs…
Basic 1,280… 1,344…
Dilu… 1,282… 1,350…
CHIPOTLE MEXICAN GRILL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
September 30, December 31,
2026 2025
──────────────────────────────────────────────────────────────────────────────
-unaudited
Assets
Current assets:
Cash and cash $ 634,210 $ 350,545
equivalents
Accounts receivable, 99,544 156,466
net
Inventory 48,867 49,508
Prepaid expenses and
other current 121,068 120,450
assets
Income tax receivable - 91,393
Investments 268,354 698,591
Total current assets 1,172,043 1,466,953
Leasehold
improvements, 3,038,421 2,679,361
property and
equipment, net
Long-term investments 100,365 197,123
Restricted cash 35,799 35,364
Operating lease 4,928,149 4,463,010
assets
Other assets 135,967 130,781
Goodwill 21,939 21,939
Total assets $ 9,432,683 $ 8,994,531
Liabilities and
shareholders' equity
Current liabilities:
Accounts payable $ 308,352 $ 212,813
Accrued payroll and 247,661 250,126
benefits
Accrued liabilities 233,053 182,448
Unearned revenue 223,644 240,375
Current operating 321,557 302,380
lease liabilities
Income tax payable 112,339 -
Total current 1,446,606 1,188,142
liabilities
Long-term operating 5,277,474 4,773,434
lease liabilities
Deferred income tax 169,145 125,674
liabilities
Other liabilities 84,314 76,674
Total liabilities 6,977,539 6,163,924
Shareholders' equity:
Common stock, $0.01
par value,
11,500,000 shares
authorized, 1,264,970
and 1,304,360 shares 12,650 13,044
issued as of
September 30, 2026
and December 31,
2025, respectively
Additional paid-in 2,297,332 2,204,944
capital
Accumulated other -9,311 -7,289
comprehensive loss
Retained earnings 154,473 619,908
Total shareholders' 2,455,144 2,830,607
equity
Total liabilities and
shareholders' $ 9,432,683 $ 8,994,531
equity
CHIPOTLE MEXICAN GRILL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine months ended
September 30,
Operating activities 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 1,046,245 $ 1,204,829
Adjustments to
reconcile net income to
net cash provided by
operating
activities:
Depreciation and 297,656 268,680
amortization
Deferred income tax 43,477 94,285
provision
Impairment, closure
costs, and asset 35,564 18,271
disposals
Provision for credit -351 -1,626
losses
Stock-based 86,369 93,966
compensation expense
Other 3,268 7,571
Changes in operating
assets and
liabilities:
Accounts receivable 55,521 49,982
Inventory 443 2,408
Prepaid expenses and
other current -8,948 -9,456
assets
Operating lease assets 254,125 235,619
Other assets 1,820 -4,487
Accounts payable 47,386 29,304
Accrued payroll and -207 -68,890
benefits
Accrued liabilities 58,595 10,342
Unearned revenue -5,141 -23,514
Income tax 203,679 -42,428
payable/receivable
Operating lease -199,213 -179,482
liabilities
Other long-term 1,850 2,708
liabilities
Net cash provided by
operating 1,922,138 1,688,082
activities
Investing activities
Purchases of leasehold
improvements, -640,597 -468,881
property and equipment
Purchases of -7,562 -15,719
investments
Maturities of 526,910 477,264
investments
Net cash used in -121,249 -7,336
investing activities
Financing activities
Repurchase of common -1,464,934 -1,683,720
stock
Tax withholding on
stock-based -56,662 -48,558
compensation awards
Other financing 4,146 2,976
activities
Net cash used in -1,517,450 -1,729,302
financing activities
Effect of exchange rate
changes on cash, 661 -187
cash equivalents and
restricted cash
Net change in cash,
cash equivalents, 284,100 -48,743
and restricted cash
Cash, cash equivalents,
and restricted 385,909 778,379
cash at beginning of
period
Cash, cash equivalents,
and restricted $ 670,009 $ 729,636
cash at end of period
Supplemental
disclosures of cash
flow
information
Income taxes paid(1) $ 102,635 $ 319,004
Purchases of leasehold
improvements,
property and equipment $ 138,947 $ 101,478
accrued in
accounts payable and
accrued liabilities
Repurchase of common
stock accrued in $ 13,462 $ 15,685
accounts payable and
accrued liabilities
(1)Included in the
income taxes paid
amount for the nine
months ended
September 30, 2026, is
$93,000 related
to the purchase of
federal transferable
energy credits for the
2026 tax year.
CHIPOTLE MEXICAN GRILL, INC.
SUPPLEMENTAL FINANCIAL AND OTHER DATA
(dollars in thousands)
(unaudited)
The following table details company-owned restaurant unit data for the periods
indicated:
F…
t…
t…
m…
e…
S… J… M… De… S…
3… 3… 3… 31, 3…
2… 2… 2… 20… 2…
──────────────────────────────────────────────────────────────────────────────
… 84 100 49 132 84
… - -3 -1 -5 -4
…
… -3 -1 - -1 -3
… 4… 4,… 4… 4,… 3…
…
… $ 3… $ 3,… $ 3… $ 3,… $ 3,…
…
…
… 2… % 2… % 0.5 % (… %) 0.3 %
…
…
The following table details partner-operated restaurant unit data for the
periods indicated:
For
the
three
mont…
ended
Sep. Jun. Mar. Dec. Sep.
30, 30, 31, 31, 30,
2026 2026 2026 2025 2025
──────────────────────────────────────────────────────────────────────────────
Ope… 5 1 - 7 2
Tot… 20 15 14 14 7
CHIPOTLE MEXICAN GRILL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Below are definitions of the non-GAAP financial measures in this release. The
following tables provide a reconciliation of non-GAAP financial measures
presented in this release to the most directly comparable financial measures
calculated and presented in accordance with GAAP.
Adjusted net income is net income excluding restaurant asset impairment and
stock-based compensation retention.
Adjusted diluted earnings per share is calculated by dividing adjusted net
income by the diluted weighted-average number of common shares outstanding.
Adjusted general and administrative expenses are general and administrative
expenses excluding expenses related to stock-based compensation expense for
specified retention equity awards.
The adjusted effective income tax rate is the effective income tax rate adjusted
to reflect the after-tax impact of non-GAAP adjustments.
Restaurant level operating margin is equal to the revenues generated by our
restaurants less direct restaurant operating costs, which consist of food,
beverage and packaging, labor, occupancy and other operating costs, expressed as
a percent of total revenue. This performance measure primarily includes the
costs that restaurant level managers can directly control and excludes other
costs that are essential to conduct our business. Management uses restaurant
level operating margin as a measure of restaurant performance. Management
believes restaurant level operating margin is useful because it highlights
trends in our core business that may not otherwise be apparent when relying
solely on GAAP financial measures.
We present these non-GAAP measures to facilitate a meaningful evaluation of our
operating performance across periods. These adjustments are intended to provide
greater transparency of underlying performance and to allow investors to
evaluate our business on the same basis as management, which uses these non-GAAP
measures in evaluating our performance.
Our adjusted net income, adjusted diluted earnings per share, adjusted general
and administrative expenses, adjusted effective income tax rate, and restaurant
level operating margin measures may not be comparable to other companies’
adjusted measures. These adjustments are not necessarily indicative of what our
actual financial performance would have been during the periods presented and
should be viewed in addition to, and not as an alternative to, our results
prepared in accordance with GAAP. Further details regarding these adjustments
are included in the tables below.
CHIPOTLE MEXICAN GRILL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Adjusted Net Income and Adjusted Diluted Earnings per Share
(in thousands, except per share amounts)
(unaudited)
Three months
ended
September 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 339,874 $ 382,103
Non-GAAP
adjustments:
Impairment
and exit
costs:
Restaurant
asset 4,339 -
impairment(1)
Stock-based 1,475 8,058
compensation…
Total
non-GAAP 5,814 8,058
adjustments
Tax effect of
non-GAAP -1,108 -298
adjustments
above(3)
After tax
impact of 4,706 7,760
non-GAAP
adjustments
Adjusted net $ 344,580 $ 389,863
income
Diluted
weighted-ave…
number of 1,267,703 1,339,522
common shares
outstanding
Diluted
earnings per $ 0.27 $ 0.29
share
Adjusted
diluted $ 0.27 $ 0.29
earnings per
share
(1) Operating lease asset and leasehold improvements, property, plant and
equipment impairment charges and other expenses for restaurants due to closures,
relocations, or underperformance.
(2) Stock-based compensation for retention equity awards granted to certain
executives in connection with the former CEO's departure.
(3) Adjustments related to the tax effect of non-GAAP adjustments, which were
determined based on the nature of the underlying non-GAAP adjustments and their
relevant jurisdictional tax rates.
CHIPOTLE MEXICAN GRILL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Adjusted General and Administrative Expenses
(in thousands)
(unaudited)
Three months ended
September 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
General and administrative $ 185,228 $ 146,742
expenses
Non-GAAP adjustments:
Stock-based compensation(1) -1,475 -8,058
Total non-GAAP adjustments -1,475 -8,058
Adjusted general and
administrative $ 183,753 $ 138,684
expenses
(1) Stock-based compensation for retention equity awards granted to certain
executives in connection with the former CEO's departure.
CHIPOTLE MEXICAN GRILL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Adjusted Effective Income Tax Rate
(unaudited)
Three months ended
September 30,
2026 2025
Effective income tax rate 25.6 % 23.1 %
Tax impact of non-GAAP - -0.3
adjustments(1)
Adjusted effective income 25.6 % 22.8 %
tax rate
(1) Adjustments related to the tax effect of non-GAAP adjustments, which were
determined based on the nature of the underlying non-GAAP adjustments and their
relevant jurisdictional tax rates.
CHIPOTLE MEXICAN GRILL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Restaurant Level Operating Margin
(in thousands)
(unaudited)
Three
months
ended Percent Percent
Septemb… of total of total
30, 2026 revenue 2025 revenue
──────────────────────────────────────────────────────────────────────────────
Income
from $ 451,964 13.7 % $ 477,172 15.9 %
operat…
Non-GA…
Adjust…
General
and 185,228 5.6 146,742 4.9
admini…
expens…
Deprec…
and 102,611 3.1 90,524 3.0
amorti…
Pre-op… 15,104 0.5 13,741 0.5
costs
Impair…
closure
costs, 13,250 0.4 7,404 0.2
and
asset
dispos…
Total
non-GA… 316,193 9.6 258,411 8.6
Adjust…
Restau…
level $ 768,157 23.3 % $ 735,583 24.5 %
operat…
margin