$CMG · CHIPOTLE MEXICAN GRILL INC
Chipotle reported Q3 2026 results with total revenue of $3.293 billion (+9.6% YoY), comparable restaurant sales up 2.1%, and diluted EPS of $0.27, down 6.9% from $0.29 a year ago. Operating margin compressed to 13.7% from 15.9%, driven by higher labor costs, G&A, and impairment charges. The company opened 84 company-owned restaurants and maintained its FY2026 outlook for low-single-digit comp growth and 350–370 new openings.
- Total revenue rose 9.6% YoY to $3.293 billion, driven by new restaurant openings and 2.1% comparable sales growth.
- Diluted EPS of $0.27 declined 6.9% from $0.29 a year ago, with net income falling to $339.9 million from $382.1 million.
- Operating margin contracted to 13.7% from 15.9%, and restaurant-level operating margin fell to 23.3% from 24.5%.
- Labor costs rose to 25.7% of revenue (vs. 25.2%) on wage inflation, performance bonuses, and promotional staffing.
- 84 company-owned restaurants opened in Q3; FY2026 guidance maintained at 350–370 openings with low-single-digit comp growth.
Extended-hours trading shows CMG at $28.89, up 0.38% from the regular close of $28.78. The modest uptick suggests the market is weighing positive transaction growth and unit expansion against margin compression and the EPS decline.
Chipotle delivered a third straight quarter of positive transaction growth and maintained full-year guidance, but margin erosion and an EPS decline test the premium valuation of this $36.4B market-cap restaurant stock.
Chipotle's 2.1% comp growth with positive transactions for three consecutive quarters stands out in a fast-casual sector where many peers are struggling to maintain traffic. The 38.8% digital mix underscores ongoing digital penetration leadership.
Labor cost inflation and wage pressures continue to weigh on margins, with labor at 25.7% of revenue. Impairment and closure costs nearly doubled to $13.3 million from $7.4 million. Forward-looking risks include tariff exposure, beef inflation, and international expansion execution.