Chipotle (CMG) investor relations material

Executive summary

• Revenue for Q2 2026 grew 9.3% year-over-year to $3.35 billion, driven by positive comparable sales, transaction growth, menu innovation, digital engagement, and new restaurant openings.

• Comparable restaurant sales increased 2.2%, with growth supported by higher average check and transaction volume.

• Digital sales accounted for 38.3% of total revenue, up from 35.5% last year, reflecting strong consumer adoption.

• The "Recipe for Growth" strategy, focusing on operational excellence, technology, brand messaging, talent development, and global expansion, continues to deliver results.

• Opened 100–101 new company-owned restaurants in Q2 2026, including 80 with Chipotlanes, and expanded internationally.

Financial highlights

• Net income for Q2 2026 was $403.5 million, down from $436.1 million in Q2 2025; diluted EPS flat at $0.32, adjusted diluted EPS at $0.33.

• Restaurant-level operating margin was 25.2%, down from 27.4% year-over-year; operating margin declined to 15.7% from 18.2%.

• Food, beverage, and packaging costs rose to 29.7% of revenue, mainly due to beef and freight inflation.

• Labor costs increased to 25.0% of revenue, driven by wage inflation and bonuses.

• Ended Q2 with $800 million in cash and investments; cash and cash equivalents at June 30, 2026, were $228.2 million.

Outlook and guidance

• Full-year comparable sales growth guidance raised to the low single-digit range.

• Plans for 350–370 new restaurant openings in 2026, including 10–15 international partner-operated units; about 80% of new company-owned restaurants will feature a Chipotlane.

• Q3 comps anticipated around +1%, factoring in a 200 basis point headwind from industry-wide Cyclospora concerns.

• Menu pricing impact expected to rise to mid-2% in Q3, with full-year pricing at the high end of the 1%-2% range.

• Estimated underlying full-year effective tax rate between 24% and 26%.