Chipotle Q1 2026 earnings: same-store sales beat expectations

Chipotle Mexican Grill reported first-quarter comparable edifice income maturation of 0.5%, reversing a drawstring of caller declines, arsenic lawsuit postulation returned to its restaurants. Analysts had penciled successful a 0.7% decline, per CNBC.

Total gross roseate 7.4% to $3.09 billion, driven by caller edifice openings and, to a lesser extent, the comparable income gain. Transaction measurement accrued 0.6%, portion mean cheque slipped 0.1%.

Compared with $386.6 million, oregon 28 cents per diluted share, successful the year-ago quarter, nett income came successful astatine $302.8 million, oregon 23 cents per diluted share. On an adjusted basis, stripping retired restructuring charges, ineligible costs, and definite different items, per-share net came to 24 cents. The operating borderline contracted to 12.9% from 16.7% a twelvemonth earlier.

Higher costs crossed the concern weighed connected profitability. Food, beverage, and packaging costs roseate to 29.6% of gross from 29.2%, driven by ostentation successful beef and freight. Labor costs accrued to 26.1% of gross from 25.0%, reflecting wage ostentation and higher benefits expense. General and administrative expenses besides climbed, successful portion due to the fact that of the company's biennial All Managers Conference held during the quarter.

"Our archetypal 4th exceeded expectations arsenic we precocious our Recipe for Growth strategy," CEO Scott Boatwright said successful a statement.

Chipotle opened 49 company-owned restaurants during the quarter, with 42 of those including a Chipotlane drive-through format. The institution said integer income represented 38.6% of full nutrient and beverage revenue.

Menu innovation has been cardinal to Chipotle's effort to triumph backmost guests, particularly younger diners who pulled backmost connected visits past year, with the concatenation pairing caller additions to its lineup with the instrumentality of fashionable limited-time items, according to CNBC. The institution besides precocious named Fernando Machado arsenic its caller main marque officer.

For the afloat year, Chipotle reiterated its outlook for astir level comparable edifice sales. According to CNBC, Rymer acknowledged the guidance was deliberately cautious fixed however hard it has go to foretell wherever consumers are headed. Executives pointed to a slowdown successful income during March and warned that ongoing determination struggle could crimp the gait of caller openings tied to its planetary enlargement concern with Alshaya Group.

Chipotle besides repurchased $700.8 cardinal of its ain banal during the 4th astatine an mean terms of $36.14 per share. As of March 31, 2026, $1.0 cardinal remained disposable nether its board-authorized repurchase program.

Chipotle banal roseate astir 3% successful after-hours trading pursuing the results.