10-QPeriod: Q1 FY2026

CHIPOTLE MEXICAN GRILL INC Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 30, 2026For Securities:CMG

Summary

Chipotle Mexican Grill, Inc. (CMG) reported its first quarter results for the period ending March 31, 2026. Total revenue saw a 7.4% increase, reaching $3.1 billion, primarily driven by food and beverage revenue growth. However, comparable restaurant sales showed a modest increase of 0.5%, with a slight decrease in average check size. This indicates a challenging sales environment despite revenue growth. The company opened 49 new restaurants, with a strong emphasis on Chipotlanes, and plans to continue aggressive expansion throughout 2026. Despite revenue growth, net income decreased by 17.9% to $302.8 million, resulting in diluted earnings per share of $0.23, down from $0.28 in the prior year. This decline is attributed to a higher effective income tax rate and increased operating costs, particularly in labor and other operating expenses, which outpaced revenue growth. The company also repurchased a significant amount of its own stock, utilizing $701 million in financing activities, impacting cash reserves. While the company maintains a strong cash position and credit facility, the rising costs and decelerating comparable sales warrant investor attention.

Financial Highlights

45 data points
Beta

Revenue

$3.09B

Net Income

$302.82M

9.8% Net Margin

EPS (Diluted)

$0.23

Total Assets

$8.80B

Cash & Equivalents

$246.64M

Free Cash Flow

$471.02M

Financial Statements
Beta
Revenue$3.09B
Operating Expenses$2.69B
Operating Income$397.06M
Net Income$302.82M
EPS (Basic)$0.23
EPS (Diluted)$0.23
Shares Outstanding (Basic)1.30B
Shares Outstanding (Diluted)1.30B

Key Highlights

  • 1Total revenue increased by 7.4% to $3.1 billion for the first quarter of 2026.
  • 2Comparable restaurant sales saw a slight increase of 0.5%, with transactions up 0.6% but average check down 0.1%.
  • 3Net income decreased by 17.9% to $302.8 million, and diluted EPS fell to $0.23 from $0.28 year-over-year.
  • 4Operating costs, including labor (up 1.1% as a % of revenue) and other operating costs (up 1.2% as a % of revenue), increased as a percentage of total revenue.
  • 5The company opened 49 new restaurants, 42 of which featured a Chipotlane, and plans to open 350-370 new restaurants in 2026.
  • 6Chipotle repurchased $701 million of its common stock during the quarter, significantly impacting financing cash flows.
  • 7The effective income tax rate increased to 25.4% from 22.9%, impacting net income.

Frequently Asked Questions

For the full year 2026, management is anticipating comparable restaurant sales to be about flat.

Labor costs increased by 1.1% as a percentage of total revenue, driven by wage inflation and higher benefits expenses. Food, beverage, and packaging costs increased by 0.4% as a percentage of total revenue, primarily due to inflation in beef and freight, partially offset by lower dairy and avocado costs.

Chipotle plans to open approximately 350 to 370 new restaurants in 2026, with about 80% of new company-owned restaurants expected to include a Chipotlane. They also plan to open 10 to 15 international partner-operated restaurants.

During the first quarter of 2026, Chipotle repurchased $701 million of its common stock. As of March 31, 2026, approximately $1.01 billion remained authorized for future share repurchases.