01—Abstract
Summary
Summary of the 10-Q filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 millionb, 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 millionc 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.
02—Key points
Key Highlights
- Total revenue increased by 7.4% to $3.1 billion for the first quarter of 2026.
- Comparable restaurant sales saw a slight increase of 0.5%, with transactions up 0.6% but average check down 0.1%.
- Net income decreased by 17.9% to $302.8 million, and diluted EPS fell to $0.23 from $0.28 year-over-year.
- Operating 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.
- The company opened 49 new restaurants, 42 of which featured a Chipotlane, and plans to open 350-370 new restaurants in 2026.
- Chipotle repurchased $701 million of its common stock during the quarter, significantly impacting financing cash flows.
- The effective income tax rate increased to 25.4% from 22.9%, impacting net income.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 30, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $3.09B$2.88B | +7.4% |
| Operating Expenses | $2.69B$2.40B | +12.3% |
| Operating Income | $397.06M$479.25M | −17.1% |
| Net Income | $302.82M$386.60M | −21.7% |
| EPS (Basic) | $0.23$0.29 | −20.7% |
| EPS (Diluted) | $0.23$0.28 | −17.9% |
| Shares Outstanding (Basic) | 1.30B1.35B | −4.2% |
| Shares Outstanding (Diluted) | 1.30B1.36B | −4.3% |
05—Questions
Frequently Asked Questions
What is Chipotle's outlook for comparable restaurant sales for the full year 2026?
For the full year 2026, management is anticipating comparable restaurant sales to be about flat.
How did labor and food costs impact profitability in the first quarter of 2026?
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.
What is the company's strategy regarding new restaurant development?
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.
What is the current status of Chipotle's stock repurchase program?
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.
06—Continue