Chipotle (CMG) investor relations material

Executive summary

• Q3 revenue rose 9.6% YoY to $3.293B; comparable sales increased 2.1%, with transactions up 0.8% for a third consecutive quarter.

• Recipe for Growth initiatives advanced across restaurant execution, digital engagement, menu innovation, people development and global expansion.

• Sales trends faced low-single-digit headwinds beginning in July amid consumer, food safety and geopolitical concerns, returning to prior levels by late August; October demand later softened with industry trends.

Financial highlights

• Net income was $339.9M vs. $382.1M; operating income was $452.0M vs. $477.2M, and diluted EPS was $0.27 vs. $0.29.

• Digital sales were $1.3B, or 38.8% of food and beverage revenue vs. 36.7% YoY.

• Restaurant-level operating margin was 23.3% vs. 24.5%; food, beverage and packaging costs were 29.5%, labor 25.7% and other operating costs 16.0% of revenue.

• GAAP G&A was $185M and non-GAAP G&A was $184M; depreciation was 3.1% of sales and the effective tax rate was 25.6%.

Outlook and guidance

• FY2026 comparable sales guidance remains low single-digit; 2026 openings are expected at 350–370, including 10–15 partner-operated locations, with ~80% of new company-owned restaurants planned to have a Chipotlane.

• Q4 comps are expected around +2%, with a potential 3%–4% exit rate; Q4 restaurant-level margin is expected just under 22%, ~150 bps lower YoY.

• FY2026 pricing is expected around 2%, rising to ~3% in Q4; 2027 inflation is expected in the low- to mid-single-digit range.

• 2027 plans call for 340–360 company-owned openings in the U.S. and Canada and 15–25 restaurants outside those markets; no 2027 comp guidance yet.

• Catering is planned for national rollout in Q1 2027; marketing budget baseline is expected at ~3% in 2027, flexed for return-generating opportunities.