Chipotle Earnings: Rising Costs Cut Profit to $0.27 a Share
Chipotle earned $0.27 a diluted share in the third quarter of 2026, down from $0.29, because its costs grew faster than its sales. Comparable restaurant sales rose 2.1% as orders grew for a third straight quarter, and by our count other operating costs cut operating margin more than labor did.
The short answer. Customers placed more orders, and net income still fell to $339.9 million from $382.1 million. Every major cost except food grew faster than sales, interest income shrank and the tax rate rose. For diners and workers, it is a chain still opening hundreds of restaurants a year whose costs of staffing and running them are growing faster than what it takes in. By our count, other operating costs, a line covering marketing, delivery and utilities, did the most to cut operating margin, ahead of head office costs and pay.
Chipotle's third quarter of 2026 in three numbers
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Chipotle earnings and comparable restaurant sales
Sales at Chipotle restaurants open more than a year rose 2.1%. A bigger average bill did most of that, and more orders, up 0.8% for a third rise in a row, did the rest.
Comparable restaurant sales count only company-owned restaurants open at least 13 full calendar months, so new openings do not inflate them. In the quarter that ended September 30, 2026, they rose 2.1%, made up of a 1.3% higher average check and 0.8% more transactions, according to Chipotle's third quarter release.
The turn in orders is recent. Transactions fell 3.2% in the fourth quarter of 2025, the February release showed, and they have grown in every quarter of 2026 since.
Chief Executive Scott Boatwright put that count first. "Three consecutive quarters of positive comparable transaction growth demonstrates that our Recipe for Growth strategy is working," he said in the release, pointing to menu and digital changes and the rollout of new kitchen equipment. Chipotle's investor slides put that equipment in more than 1,700 restaurants, with about 2,000 planned by the end of the year.
Show the data
| Category | Comparable restaurant sales | Comparable transactions |
|---|---|---|
| Q3 2025 | 0.3% | -0.8% |
| Q4 2025 | -2.5% | -3.2% |
| Q1 2026 | 0.5% | 0.6% |
| Q2 2026 | 2.2% | 1.0% |
| Q3 2026 | 2.1% | 0.8% |
Total revenue rose 9.6% to $3.3 billion, and Chipotle said new restaurants drove most of that increase. It ended September with 4,267 company-owned restaurants.
Average restaurant sales, the company's measure of a restaurant's food and beverage sales over the past 12 months, slipped to $3.106 million from $3.132 million.
Revenue was in line with the $3.29 billion of the consensus estimate compiled by Zacks Investment Research. Earnings of $0.27 a share came in 2 cents under its 29 cents.
Digital sales, the revenue from the app, the website and delivery services, were 38.8% of food and beverage revenue, up from 36.7% a year earlier. The slides say its rewards members accounted for over 33% of sales in the quarter.
Show the data
| Quarter | Comparable restaurant sales | Transactions | Average check | Company-owned restaurants at quarter end |
|---|---|---|---|---|
| Q3 2025 | +0.3% | -0.8% | +1.1% | 3,916 |
| Q4 2025 | -2.5% | -3.2% | +0.7% | 4,042 |
| Q1 2026 | +0.5% | +0.6% | -0.1% | 4,090 |
| Q2 2026 | +2.2% | +1.0% | +1.2% | 4,186 |
| Q3 2026 | +2.1% | +0.8% | +1.3% | 4,267 |
Source: Chipotle quarterly releases, Q3 2025 to Q3 2026; restaurant counts from the Q3 2026 release, company-owned restaurant unit data.
Why Chipotle profit fell
Chipotle's costs grew faster than its sales, so the share of revenue left after operating costs fell to 13.7% from 15.9%. The biggest push came from a line called other operating costs, more than from pay.
By our count, total operating expenses rose 12.5% from a year earlier, while revenue rose 9.6%. Net income fell to $339.9 million from $382.1 million.
Adjusted earnings per share, which leave out restaurant asset impairments and retention stock awards tied to the former chief executive's departure, were also $0.27, against $0.29 a year earlier.
Operating margin, the share of revenue left after operating costs, fell 2.2 points. Other operating costs, which Chipotle's 2025 annual report says include marketing and promotions, delivery, card fees, utilities, technology and maintenance, rose to 16.0% of revenue from 15.0%. That took about 1.0 point off the margin, by our count.
Labor took about 0.5 point, rising to 25.7% of revenue. Measured in dollars, pay still rose more, by $90.8 million against $75.3 million by our calculation, because it is the larger cost. Chipotle named lower sales volumes, higher pay including wage inflation and performance bonuses, extra staff for promotions and higher insurance costs.
Show the data
| Step | Value |
|---|---|
| Q3 2025 margin | 15.9 pts |
| Food, packaging | +0.5 pts |
| Labor | -0.5 pts |
| Occupancy | -0.2 pts |
| Other operating | -1.0 pts |
| General and administrative | -0.7 pts |
| Depreciation, other | -0.3 pts |
| Q3 2026 margin | 13.7 pts |
The release gives no reason for the jump in other operating costs. For the second quarter, Chipotle's quarterly report said a similar rise came mainly from marketing and promotional activities and from inflation in insurance claims, maintenance and utilities. Chipotle has not yet filed its 10-Q for the quarter, the next company document that may explain it.
General and administrative expenses, the cost of running the company above its restaurants, rose to $185.2 million from $146.7 million. Chipotle tied that to stock-based pay, performance bonuses and outside services for corporate projects, and it cost about 0.7 point of margin.
Food was the one big cost that went the other way. Food, beverage and packaging fell to 29.5% of revenue from 30.0%, helped by menu price increases, tariff relief and the mix of limited-time offers. Inflation in beef and freight, and higher protein usage, offset part of that.
Two more lines below operating profit pulled net income down. Interest and other income fell to $5.2 million from $19.8 million.
The effective tax rate, the share of pretax profit paid as income tax, rose to 25.6% from 23.1%. Chipotle put that down to nondeductible expenses and fewer tax credits.
The restaurants themselves still earned more in dollars. Chipotle's restaurant level operating margin, a company measure that leaves out head office and other costs above the restaurants, came to $768.2 million against $735.6 million. As a share of revenue it fell to 23.3% from 24.5%.
The quarter repeats a pattern of the year. In each 2026 quarter so far, transactions grew and operating margin came in below the same quarter of 2025.
Show the data
| Item | 2025 | 2026 | Change |
|---|---|---|---|
| First quarter | 16.7% | 12.9% | -3.8 pts |
| Second quarter | 18.2% | 15.7% | -2.5 pts |
| Third quarter | 15.9% | 13.7% | -2.2 pts |
Show the data
| Share of total revenue | Q3 2026 | Q3 2025 |
|---|---|---|
| Food, beverage and packaging | 29.5% | 30.0% |
| Labor | 25.7% | 25.2% |
| Occupancy | 5.4% | 5.3% |
| Other operating costs | 16.0% | 15.0% |
| General and administrative expenses | 5.6% | 4.9% |
| Depreciation and amortization | 3.1% | 3.0% |
| Pre-opening costs | 0.5% | 0.5% |
| Impairment, closure costs and asset disposals | 0.4% | 0.2% |
| Operating margin | 13.7% | 15.9% |
| Restaurant level operating margin, company measure | 23.3% | 24.5% |
Source: Chipotle third quarter 2026 release, condensed consolidated statements of income and reconciliation tables, three months ended September 30.
CMG stock after the earnings report
Chipotle shares swung both ways after hours. By 5:12 p.m. ET they traded about 8% above their price at the closing bell, by our calculation, in thinner trading than the regular session that sets the next close.
The last trade at 5:12 p.m. ET was $31.00, against $28.715 in the last minute before the bell, StockTitan real-time Nasdaq data show. In the first minute after the 4:10 p.m. ET release, trades ran both below and above that level, and Chipotle's conference call was scheduled for 4:30 p.m. ET.
The company gave no comment on the share price, and the next regular session will set the first closing price after the results.
Show the data
| Time, October 28, 2026 (ET) | CMG price |
|---|---|
| 3:59 p.m. minute, last before the bell | $28.715 |
| 4:10 p.m. minute, low | $27.35 |
| 4:10 p.m. minute, high | $29.48 |
| 5:12 p.m., last trade | $31.00 |
Source: StockTitan real-time Nasdaq data, read at 5:13 p.m. ET.
Chipotle 2026 outlook and new restaurant openings
Chipotle did not change its 2026 forecast. It still expects comparable sales to grow by a low single digit percentage this year. Its first plan for 2027 calls for 340 to 360 new company-owned restaurants in the U.S. and Canada.
The forecast, which companies call guidance, has moved once this year. In the April release, Chipotle expected full-year comparable restaurant sales to be about flat. In July it raised that to growth in the low single digit range, and the October release keeps it.
The 2027 plan is new in this release. Beyond the U.S. and Canada, Chipotle expects around 15 to 25 company-owned and partner-operated restaurants.
In the third quarter it opened 84 company-owned restaurants, 53 of them with a Chipotlane, a drive-through lane for orders placed ahead. It also opened five restaurants run by partners abroad. The slides list its entry into Mexico in July, Saudi Arabia in August and South Korea in September, each with a local operator.
| 2026 forecast item | April 2026 | July 2026 | October 2026 |
|---|---|---|---|
| Full-year comparable restaurant sales | About flat | Low single digit growth | Low single digit growth |
| New restaurant openings | 350 to 370, including 10 to 15 international partner-operated | 350 to 370, including 10 to 15 international partner-operated | 350 to 370, including 10 to 15 international partner-operated |
| New company-owned restaurants with a Chipotlane | Around 80% | Around 80% | Around 80% |
| Underlying full-year effective tax rate, before discrete items | 24% to 26% | 24% to 26% | 24% to 26% |
Source: Chipotle first, second and third quarter 2026 releases, Outlook sections.
Chipotle dividend, buybacks and debt
Chipotle pays no dividend. It returns cash by buying back its own stock, and it spent $110.0 million on that in the quarter, far less than in any of the four quarters before.
Chipotle has not declared or paid any cash dividend on its common stock, its 2025 annual report says, and it does not plan to in the near future. So there is no Chipotle dividend yield or dividend history to track.
Buybacks slowed sharply. The company repurchased $110.0 million of stock at an average of $34.05 a share, against $630.7 million in the second quarter. The release gives no reason, and $1.6 billion of board authorization was still unused on September 30.
Show the data
| Category | Value |
|---|---|
| Q3 2025 | $686.5M |
| Q4 2025 | $741.6M |
| Q1 2026 | $700.8M |
| Q2 2026 | $630.7M |
| Q3 2026 | $110.0M |
Earlier buybacks still shrank the share count. Diluted shares, which count stock awards that could turn into shares, averaged about 1.27 billion in the quarter, 5.4% fewer than a year earlier. So net income per diluted share fell about 6%, less than the 11.1% fall in net income, by our calculation.
The September 30 balance sheet in the release shows no borrowings, and Chipotle's $500 million revolving credit line was undrawn on June 30, the second quarter report says. Its operating lease liabilities, the rent it owes under restaurant leases, came to $5.6 billion at the end of September, by our sum of the balance sheet lines. More detail is on Chipotle's financials page.
What to watch
- What drove the jump in other operating costs: Chipotle's third quarter Form 10-Q, which it said it will file with the SEC.
- Whether orders keep growing in the fourth quarter: Chipotle's fourth quarter and full year 2026 results release; last year's came on February 3.
Our numbers
- About 1.0 of the 2.2-point fall in operating margin came from other operating costs, against 0.5 point from labor: each cost line's share of revenue, Q3 2026 minus Q3 2025.
- Operating expenses up 12.5% against revenue up 9.6%: total operating expenses and total revenue, Q3 2026 against Q3 2025.
- $110.0 million of buybacks, the smallest of the last five quarters: the repurchase amounts in Chipotle's releases from Q3 2025 to Q3 2026.
- Operating margin below a year earlier in all three 2026 quarters, each with more transactions: the operating margins and transaction changes in the three 2026 releases.
- Diluted shares down 5.4%, net income down 11.1% and net income per diluted share down about 6%: Q3 2026 against Q3 2025, from the release's income statement.
- Labor up $90.8 million and other operating costs up $75.3 million in dollars: Q3 2026 minus Q3 2025, from the release's income statement.
- Shares about 8% above the bell at 5:12 p.m. ET: the $31.00 last trade against $28.715 in the 3:59 p.m. minute, StockTitan real-time Nasdaq data.
Frequently asked questions
How did Chipotle do in Q3 2026?
Total revenue rose 9.6% to $3.3 billion and comparable restaurant sales rose 2.1%. Diluted earnings per share fell to $0.27 from $0.29, and net income fell to $339.9 million from $382.1 million.
Does Chipotle pay a dividend?
No. Chipotle has not paid a cash dividend on its common stock and says it does not plan to in the near future. It buys back shares instead, $110.0 million in the third quarter of 2026.
Did Chipotle raise its guidance?
No. In the October 28 release Chipotle kept its forecast of full-year 2026 comparable restaurant sales growth in the low single digit range. It had raised that forecast in July from about flat.
Is Chipotle traffic going up?
Yes. Comparable transactions, the count of orders at established restaurants, rose 0.8% in the third quarter of 2026, the third quarter in a row of growth, the company said.
Did Chipotle beat earnings estimates?
No. Earnings of $0.27 a share were 2 cents under the 29 cents of the consensus estimate compiled by Zacks Investment Research. Revenue of $3.3 billion was in line with its $3.29 billion.
How many Chipotle restaurants are there?
Chipotle had 4,267 company-owned restaurants and 20 partner-operated restaurants as of September 30, 2026. It plans 350 to 370 new openings in 2026.
Sources
- Chipotle Announces Third Quarter 2026 Results, StockTitan, October 28, 2026
- Chipotle second quarter 2026 results, StockTitan, July 29, 2026
- Chipotle Announces First Quarter 2026 Results, StockTitan, April 29, 2026
- Chipotle fourth quarter and full year 2025 results, StockTitan, February 3, 2026
- Chipotle Announces Third Quarter 2025 Results, StockTitan, October 29, 2025
- Chipotle Form 8-K, exhibit 99.1, October 28, 2026
- Chipotle Q3 2026 Investor Information slides
- Chipotle Form 10-Q, quarter ended June 30, 2026
- Chipotle Form 10-K, year ended December 31, 2025
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