Earnings fall as Chipotle (NYSE: CMG) grows Q1 2026 sales 7.4%
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Chipotle Mexican Grill reported mixed first-quarter 2026 results. Total revenue rose 7.4% to $3.09 billion, driven mainly by new restaurant openings and a 0.5% increase in comparable restaurant sales as transactions grew 0.6% and average check slipped 0.1%.
Profitability softened. Operating margin fell to 12.9% from 16.7%, and net income declined to $302.8 million. Diluted earnings per share dropped 17.9% to $0.23, while adjusted diluted EPS decreased 17.2% to $0.24. Higher food, labor, and general and administrative costs, including wage inflation, legal matters and a managers conference, weighed on margins.
Digital sales accounted for 38.6% of food and beverage revenue. The company opened 49 new restaurants, including 42 with Chipotlanes, ending the quarter with 4,090 company-owned locations. Chipotle repurchased $700.8 million of stock, and management expects full-year 2026 comparable restaurant sales to be about flat with 350 to 370 new openings.
Positive
- None.
Negative
- Margins and earnings under pressure: Operating margin fell from 16.7% to 12.9%, and diluted EPS declined 17.9% to $0.23, with adjusted EPS down 17.2% to $0.24 as higher food, labor, and general and administrative costs outpaced 7.4% revenue growth.
Insights
Revenue grew on new units, but margins and EPS contracted notably.
Chipotle delivered first-quarter 2026 revenue of $3.09 billion, up 7.4%, supported by 49 new openings and a modest 0.5% comparable sales increase driven by higher transactions. Digital sales remained strong at 38.6% of food and beverage revenue.
Profitability weakened as food, labor and occupancy expenses grew faster than sales. Restaurant-level operating margin declined to 23.3%, and operating margin fell to 12.9% from 16.7%. Net income dropped to $302.8 million, while adjusted diluted EPS fell to $0.24, reflecting cost inflation and legal-related items.
Management’s 2026 outlook calls for roughly flat full-year comparable restaurant sales but 350–370 new openings, most with Chipotlanes, and an underlying effective tax rate of 24–26%. Actual performance will hinge on controlling cost pressures and sustaining transaction growth across the remaining 2026 quarters.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Total revenue: $3,088.2M
Comparable restaurant sales: 0.5%
Operating margin: 12.9%
+5 more
8 metrics
Total revenue
$3,088.2M
Q1 2026, up 7.4% year over year
Comparable restaurant sales
0.5%
Q1 2026 increase vs prior-year quarter
Operating margin
12.9%
Q1 2026 vs 16.7% in Q1 2025
Net income
$302.8M
Q1 2026 condensed consolidated statement of income
Diluted EPS
$0.23
Q1 2026, down from $0.28 in Q1 2025
Digital sales mix
38.6%
Share of Q1 2026 food and beverage revenue
New restaurants opened
49 units
Q1 2026 company-owned, 42 with Chipotlanes
Share repurchases
$700.8M
Q1 2026 at $36.14 average price per share
Key Terms
Comparable restaurant sales, Restaurant level operating margin, Adjusted diluted earnings per share, Chipotlane, +2 more
6 terms
Comparable restaurant sales financial
"Comparable restaurant sales increased 0.5%"
Comparable restaurant sales measure how much revenue changed at locations that were open for a set prior period, excluding new or closed outlets, so it shows like-for-like sales performance. Investors use it as an 'apples-to-apples' gauge of customer demand, pricing power and operational health—rising comparable sales suggest stronger underlying business, while declines can signal weakening traffic or pricing issues even if overall revenue grows due to new openings.
Restaurant level operating margin financial
"Restaurant level operating margin... expressed as a percent of total revenue"
Restaurant level operating margin measures how much profit a single restaurant keeps from its sales after paying the direct costs of running that location — things like food, beverage, hourly wages and day-to-day supplies — but before adding corporate overhead, interest, taxes or other company-wide expenses. Investors use it like a per-store health check: higher margins mean each location is more efficient and can better absorb corporate costs or support expansion, similar to knowing how much cash each shop generates before headquarters costs.
Chipotlane other
"42 locations including a Chipotlane"
Partner-operated restaurants financial
"Partner-operated restaurants - Chipotle restaurants over which Chipotle does not have a controlling financial interest"
Non-GAAP financial measures financial
"Adjusted restaurant level operating margin... are non-GAAP financial measures"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Earnings Snapshot
Revenue: $3,088.2M · Guidance included
Q1 2026
Revenue
$3,088.2M
+7.4% YoY
Net income
$302.8M
down vs $386.6M prior year
Diluted EPS
$0.23
down from $0.28 prior year
Comparable restaurant sales
0.5%
return to positive comps
Guidance
Management expects full-year 2026 comparable restaurant sales to be about flat, 350–370 new restaurant openings including 10–15 international partner-operated restaurants, and an underlying effective tax rate between 24% and 26% before discrete items.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 29, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (949 ) 524-4000
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02 Results of Operations and Financial Condition.
On April 29, 2026, Chipotle Mexican Grill, Inc. issued a press release announcing earnings and other financial results for our fiscal quarter ended March 31, 2026, and that management would review these results in a conference call at 4:30 pm Eastern time on April 29, 2026.
Item 9.01 Financial Statements and Exhibits.
Exhibit Index
| Exhibit Number | Exhibit Description | |||||||
| 99.1 | Chipotle Mexican Grill, Inc. Press Release, dated April 29, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Chipotle Mexican Grill, Inc. | ||||||||
April 29, 2026 | By: | /s/ Matthew R. Bush | ||||||
Name: Matthew Bush | ||||||||
Title: Vice President, Controller (principal accounting officer and duly authorized signatory for the registrant) | ||||||||
Exhibit 99.1
 | EARNINGS RELEASE PR Contact: Laurie Schalow (949) 524-4035 MediaRelations@chipotle.com | ||||
IR Contact: Cindy Olsen, CFA (949) 524-4205 Cindy.Olsen@chipotle.com | |||||
CHIPOTLE ANNOUNCES FIRST QUARTER 2026 RESULTS
RETURN TO POSITIVE TRANSACTIONS DRIVES 0.5% COMPARABLE RESTAURANT SALES GROWTH; REVENUE INCREASES 7.4% TO $3.1 BILLION
NEWPORT BEACH, Calif. – April 29, 2026 – Chipotle Mexican Grill, Inc. (NYSE: CMG) today reported financial results for its first quarter ended March 31, 2026.
First quarter highlights, year over year:
•Total revenue increased 7.4% to $3.1 billion
•Comparable restaurant sales increased 0.5%
•Operating margin was 12.9%, a decrease from 16.7%
•Adjusted restaurant level operating margin1 was 23.7%, a decrease from 26.2%
•Diluted earnings per share was $0.23, a 17.9% decrease from $0.28
•Adjusted diluted earnings per share1 was $0.24, a 17.2% decrease from $0.29
•Opened 49 company-owned restaurants, with 42 locations including a Chipotlane.
“Our first quarter exceeded expectations as we advanced our Recipe for Growth strategy, delivering tangible progress across operations, digital, menu innovation, people, and development,” said Scott Boatwright, Chief Executive Officer, Chipotle. “We are excited to welcome a new Chief Brand Officer and a new Chief Digital Officer to further strengthen our value proposition, sharpen our brand messaging, and accelerate innovation—positioning Chipotle for sustained, long-term growth as we advance on our path to becoming a global iconic brand.”
Results for the three months ended March 31, 2026:
Total revenue in the first quarter of 2026 was $3.1 billion, an increase of 7.4% compared to the first quarter of 2025. The increase was driven by new restaurant openings and, to a lesser extent, a 0.5% increase in comparable restaurant sales due to higher transactions of 0.6%, partially offset by a 0.1% decrease in average check. Digital sales represented 38.6% of total food and beverage revenue.
During the first quarter we opened 49 company-owned restaurants, of which 42 included a Chipotlane. Chipotlanes continue to perform well and are helping enhance guest access and convenience, as well as increase new restaurant sales, margins and returns.
Food, beverage and packaging costs in the first quarter of 2026 were 29.6% of total revenue, an increase from 29.2% in the first quarter of 2025. The increase was driven by inflation, primarily in beef and freight, and higher produce usage. These increases were partially offset by lower dairy and avocado costs, and the benefit of menu price increases.
Labor costs in the first quarter of 2026 were 26.1% of total revenue, an increase from 25.0% in the first quarter of 2025. The increase was primarily driven by wage inflation, lower average restaurant sales volumes, and higher benefits expense, including performance-based bonuses. These headwinds were partially offset by the benefit of menu price increases. Excluding a 40 basis point impact from costs related to certain legal proceedings, adjusted labor costs1 were 25.7% of total revenue, compared to 25.0% in the first quarter of 2025.
1Adjusted restaurant level operating margin, adjusted diluted earnings per share, adjusted labor costs, adjusted net income, adjusted general and administrative expenses, and non-GAAP effective income tax rate are non-GAAP financial measures. Reconciliations to GAAP measures and further information are set forth in the table at the end of this press release.
General and administrative expenses for the first quarter of 2026 were $203.7 million, compared to $172.8 million in the first quarter of 2025. The increase was driven by our biennial All Managers Conference held in the first quarter of 2026, performance bonuses and wages, and benefited from lower stock-based compensation. Adjusted general and administrative expenses1 for the first quarter of 2026 were $197.9 million, compared to $160.9 million in the first quarter of 2025.
The effective income tax rate for the first quarter of 2026 was 25.4%, an increase from 22.9% in the first quarter of 2025. The increase was driven by a reduction in tax benefits related to option exercises and equity vesting, fewer tax credits, and an increase in other discrete income tax items.
Net income for the first quarter of 2026 was $302.8 million, or $0.23 per diluted share, compared to $386.6 million, or $0.28 per diluted share, in the first quarter of 2025. Adjusted net income1 for the first quarter of 2026 was $316.2 million, or $0.24 per adjusted diluted share, compared to $396.8 million, or $0.29 per adjusted diluted share, in the first quarter of 2025.
During the first quarter of 2026 we repurchased $700.8 million of stock at an average price per share of $36.14. As of March 31, 2026, $1.0 billion remained available under share repurchase authorizations from our Board of Directors. The repurchase authorization may be modified, suspended or discontinued at any time.
More information will be available in our Quarterly Report on Form 10-Q, which will be filed with the SEC in April 2026.
Outlook
For 2026, management is anticipating the following:
•Full year comparable restaurant sales to be about flat
•350 to 370 new restaurant openings, which includes 10 to 15 international partner-operated restaurants. Around 80% of company-owned restaurants will have a Chipotlane
•An estimated underlying effective full year tax rate between 24% and 26% before discrete items
Definitions
The following definitions apply to these terms as used throughout this release:
•Comparable restaurant sales, or sales comps, and comparable restaurant transactions, represent the change in period-over-period total revenue or transactions for company-owned restaurants in operation for at least 13 full calendar months.
•Average restaurant sales refers to the average trailing 12-month food and beverage revenue for company-owned restaurants in operation for at least 12 full calendar months.
•Restaurant level operating margin represents total revenue less direct restaurant operating costs, expressed as a percent of total revenue.
•Digital sales represent food and beverage revenue for company-owned restaurants generated through the Chipotle website, Chipotle app or third-party delivery aggregators. Digital sales include revenue deferrals associated with Chipotle Rewards.
•Partner-operated restaurants - Chipotle restaurants over which Chipotle does not have a controlling financial interest and for which Chipotle does not directly manage day-to-day operations. This includes restaurants operated by third parties pursuant to license or franchise agreements and restaurants in which Chipotle holds a minority, non‑controlling ownership interest.
1Adjusted restaurant level operating margin, adjusted diluted earnings per share, adjusted labor costs, adjusted net income, adjusted general and administrative expenses, and non-GAAP effective income tax rate are non-GAAP financial measures. Reconciliations to GAAP measures and further information are set forth in the table at the end of this press release.
Conference Call Details and Supplemental Slides
Chipotle will host a conference call on Wednesday, April 29, 2026, at 4:30 PM Eastern time to discuss first quarter 2026 financial results and provide a business update for the second quarter to date. In connection, supplemental slides for the call will be available on the company's website at ir.chipotle.com/presentations.
The conference call can be accessed live over the phone by dialing 1-888-317-6003, or for international callers, by dialing 1-412-317-6061 and using code: 1676292. The call will be webcast live on the company's website at ir.chipotle.com/events. An archived webcast will be available approximately one hour after the end of the call.
About Chipotle
Chipotle Mexican Grill, Inc. (NYSE: CMG) is cultivating a better world by serving responsibly sourced, classically-cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives. There are over 4,100 restaurants as of March 31, 2026, in the United States, Canada, the United Kingdom, France, Germany, and the Middle East and it is the only restaurant company of its size that owns and operates all its restaurants in North America and Europe. With over 135,000 employees passionate about providing a great guest experience, Chipotle is a longtime leader and innovator in the food industry. Chipotle is committed to making its food more accessible to everyone while continuing to be a brand with a demonstrated purpose as it leads the way in digital, technology and sustainable business practices. For more information or to place an order online, visit WWW.CHIPOTLE.COM.
Forward-Looking Statements
Certain statements in this press release, in the April 29, 2026, conference call and in the supplemental slides for the call are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements under “Outlook” and "Recipe for Growth Strategy," and about our anticipated full year 2026 comparable restaurant sales growth, number of new company-owned and international partner-owned restaurant openings in 2026, expected number of restaurants with Chipotlanes, and estimated underlying effective 2026 full year tax rate, as well as statements about the expected success of our “Recipe for Growth” strategy, our future food, beverage, packaging, labor, general and administrative and other costs, future estimated tax rates and future long-term prospects. We use words such as “anticipate”, “believe”, “could”, “should”, “may”, “approximately”, “estimate”, “confident”, “assuming”, “expect”, “intend”, “project”, “target”, “goal” and similar terms and phrases, including references to assumptions, to identify forward-looking statements. The forward-looking statements in this press release are based on currently available operating, financial and competitive information available to us as of the date of this release and we assume no obligation to update these forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in the statements, including but not limited to: wage inflation and state or local regulations mandating higher minimum wages; the competitive labor market, which impacts our ability to attract and retain qualified employees; the impact of any union organizing efforts and our responses to such efforts; increases in ingredient and other operating costs due to inflation, global conflicts, severe weather, our Food with Integrity philosophy, tariffs or trade restrictions; intermittent supply shortages relating to our Food with Integrity philosophy, rapid expansion and supply chain disruptions; risks of food safety incidents and food-borne illnesses; our reliance on certain information technology systems and potential material failures, interruptions or outages; risks that our investments in new technology and technological innovations may not generate returns; privacy and cyber security risks, including breaches, unauthorized access, theft, modification, destruction or ransom of guest or employee personal or confidential information stored on our network or the network of third party providers; the impact of competition, including from sources outside the restaurant industry; the impact of government regulations relating to our employees, employment practices, restaurant design and construction, and the sale of food or alcoholic beverages; our ability to achieve our planned growth, such as the costs and availability of suitable new restaurant sites, construction materials and contractors and restaurant equipment; the expected costs and risks related to our international expansion, including through partner-operated restaurants in the Middle East, Asia and Mexico; our ability to achieve expected levels of comparable restaurant sales due to factors such as changes in guests' perceptions of our brand, including as a result of negative publicity or social media posts and decreased consumer spending, or the inability to increase menu prices or realize the benefits of menu price increases; failure to meet market expectations for our financial performance or any announced guidance and the impact thereof; the potential impact of activist shareholder actions or tactics; failure to attract or retain key executive talent; the impact of our brand, marketing, promotional, advertising and pricing strategies, digital platform and menu innovations; our reliance on third party delivery services and the IT infrastructure; litigation risks, including possible governmental actions and potential class action litigation related to food safety incidents, cybersecurity incidents, employment or privacy laws, advertising claims, contract disputes or other matters. In addition, many of the foregoing risks and uncertainties are, or could be, exacerbated by any worsening of the global business and macroeconomic environment. These statements also are subject to other risk factors described from time to time in our SEC reports, including our annual report on Form 10-K and quarterly reports on Form 10-Q, all of which are available on the investor relations page of our website at ir.Chipotle.com.
CHIPOTLE MEXICAN GRILL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
| Three months ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Food and beverage revenue | $ | 3,072,730 | 99.5 | % | $ | 2,859,831 | 99.5 | % | |||||||||||||||
| Delivery service revenue | 15,512 | 0.5 | 15,422 | 0.5 | |||||||||||||||||||
| Total revenue | 3,088,242 | 100.0 | 2,875,253 | 100.0 | |||||||||||||||||||
| Restaurant operating costs (exclusive of depreciation and amortization shown separately below): | |||||||||||||||||||||||
| Food, beverage and packaging | 913,346 | 29.6 | 838,403 | 29.2 | |||||||||||||||||||
| Labor | 805,411 | 26.1 | 718,226 | 25.0 | |||||||||||||||||||
| Occupancy | 169,881 | 5.5 | 149,841 | 5.2 | |||||||||||||||||||
| Other operating costs | 480,643 | 15.6 | 415,161 | 14.4 | |||||||||||||||||||
| General and administrative expenses | 203,720 | 6.6 | 172,783 | 6.0 | |||||||||||||||||||
| Depreciation and amortization | 96,718 | 3.1 | 87,211 | 3.0 | |||||||||||||||||||
| Pre-opening costs | 11,641 | 0.4 | 8,210 | 0.3 | |||||||||||||||||||
| Impairment, closure costs, and asset disposals | 9,819 | 0.3 | 6,168 | 0.2 | |||||||||||||||||||
| Total operating expenses | 2,691,179 | 87.1 | 2,396,003 | 83.3 | |||||||||||||||||||
| Income from operations | 397,063 | 12.9 | 479,250 | 16.7 | |||||||||||||||||||
| Interest and other income, net | 8,742 | 0.3 | 22,253 | 0.8 | |||||||||||||||||||
| Income before income taxes | 405,805 | 13.1 | 501,503 | 17.4 | |||||||||||||||||||
| Provision for income taxes | 102,981 | 3.3 | 114,904 | 4.0 | |||||||||||||||||||
| Net income | $ | 302,824 | 9.8 | % | $ | 386,599 | 13.4 | % | |||||||||||||||
| Earnings per share: | |||||||||||||||||||||||
| Basic | $ | 0.23 | $ | 0.29 | |||||||||||||||||||
| Diluted | $ | 0.23 | $ | 0.28 | |||||||||||||||||||
| Weighted-average common shares outstanding: | |||||||||||||||||||||||
| Basic | 1,298,220 | 1,354,518 | |||||||||||||||||||||
| Diluted | 1,301,859 | 1,360,719 | |||||||||||||||||||||
CHIPOTLE MEXICAN GRILL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
| March 31, 2026 | December 31, 2025 | ||||||||||
| (unaudited) | |||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 246,636 | $ | 350,545 | |||||||
| Accounts receivable, net | 94,934 | 156,466 | |||||||||
| Inventory | 44,685 | 49,508 | |||||||||
| Prepaid expenses and other current assets | 126,278 | 120,450 | |||||||||
| Income tax receivable | - | 91,393 | |||||||||
| Investments | 624,786 | 698,591 | |||||||||
| Total current assets | 1,137,319 | 1,466,953 | |||||||||
| Leasehold improvements, property and equipment, net | 2,767,047 | 2,679,361 | |||||||||
| Long-term investments | 96,397 | 197,123 | |||||||||
| Restricted cash | 35,662 | 35,364 | |||||||||
| Operating lease assets | 4,614,939 | 4,463,010 | |||||||||
| Other assets | 129,916 | 130,781 | |||||||||
| Goodwill | 21,939 | 21,939 | |||||||||
| Total assets | $ | 8,803,219 | $ | 8,994,531 | |||||||
| Liabilities and shareholders' equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 247,287 | $ | 212,813 | |||||||
| Accrued payroll and benefits | 192,520 | 250,126 | |||||||||
| Accrued liabilities | 231,312 | 182,448 | |||||||||
| Unearned revenue | 207,417 | 240,375 | |||||||||
| Current operating lease liabilities | 310,151 | 302,380 | |||||||||
| Income tax payable | 48,666 | - | |||||||||
| Total current liabilities | 1,237,353 | 1,188,142 | |||||||||
| Long-term operating lease liabilities | 4,935,729 | 4,773,434 | |||||||||
| Deferred income tax liabilities | 143,559 | 125,674 | |||||||||
| Other liabilities | 78,943 | 76,674 | |||||||||
| Total liabilities | 6,395,584 | 6,163,924 | |||||||||
| Shareholders' equity: | |||||||||||
| Common stock, $0.01 par value, 11,500,000 shares authorized, 1,287,050 and 1,304,360 shares issued as of March 31, 2026 and December 31, 2025, respectively | 12,871 | 13,044 | |||||||||
| Additional paid-in capital | 2,235,107 | 2,204,944 | |||||||||
| Accumulated other comprehensive loss | (8,013) | (7,289) | |||||||||
| Retained earnings | 167,670 | 619,908 | |||||||||
| Total shareholders' equity | 2,407,635 | 2,830,607 | |||||||||
| Total liabilities and shareholders' equity | $ | 8,803,219 | $ | 8,994,531 | |||||||
CHIPOTLE MEXICAN GRILL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Operating activities | |||||||||||
| Net income | $ | 302,824 | $ | 386,599 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 96,718 | 87,211 | |||||||||
| Deferred income tax provision | 17,887 | (7,329) | |||||||||
| Impairment, closure costs, and asset disposals | 9,658 | 6,018 | |||||||||
| Provision for credit losses | (454) | (1,294) | |||||||||
| Stock-based compensation expense | 28,000 | 37,601 | |||||||||
| Other | 578 | 914 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | 59,842 | 43,239 | |||||||||
| Inventory | 4,745 | 7,535 | |||||||||
| Prepaid expenses and other current assets | (9,438) | (9,748) | |||||||||
| Operating lease assets | 79,793 | 72,540 | |||||||||
| Other assets | 1,759 | 61 | |||||||||
| Accounts payable | 22,678 | 13,208 | |||||||||
| Accrued payroll and benefits | (55,394) | (107,013) | |||||||||
| Accrued liabilities | 41,962 | (183) | |||||||||
| Unearned revenue | (27,663) | (31,001) | |||||||||
| Income tax payable/receivable | 140,039 | 113,377 | |||||||||
| Operating lease liabilities | (62,990) | (55,662) | |||||||||
| Other long-term liabilities | 806 | 1,002 | |||||||||
| Net cash provided by operating activities | 651,350 | 557,075 | |||||||||
| Investing activities | |||||||||||
| Purchases of leasehold improvements, property and equipment | (180,332) | (144,810) | |||||||||
| Purchases of investments | (250) | (4,000) | |||||||||
| Maturities of investments | 172,509 | 154,889 | |||||||||
| Net cash (used in)/provided by investing activities | (8,073) | 6,079 | |||||||||
| Financing activities | |||||||||||
| Repurchase of common stock | (701,027) | (553,796) | |||||||||
| Tax withholding on stock-based compensation awards | (47,997) | (32,902) | |||||||||
| Other financing activities | 1,534 | 1,524 | |||||||||
| Net cash used in financing activities | (747,490) | (585,174) | |||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 602 | (236) | |||||||||
| Net change in cash, cash equivalents, and restricted cash | (103,611) | (22,256) | |||||||||
| Cash, cash equivalents, and restricted cash at beginning of period | 385,909 | 778,379 | |||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 282,298 | $ | 756,123 | |||||||
| Supplemental disclosures of cash flow information | |||||||||||
| Income taxes paid/(refunded) | $ | (55,146) | $ | 8,754 | |||||||
| Purchases of leasehold improvements, property and equipment accrued in accounts payable and accrued liabilities | $ | 102,570 | $ | 76,389 | |||||||
| Repurchase of common stock accrued in accounts payable and accrued liabilities | $ | 29,190 | $ | 12,102 | |||||||
CHIPOTLE MEXICAN GRILL, INC.
SUPPLEMENTAL FINANCIAL AND OTHER DATA
(dollars in thousands)
(unaudited)
The following table details company-owned restaurant unit data for the periods indicated:
| For the three months ended | |||||||||||||||||||||||||||||
| Mar. 31, 2026 | Dec. 31, 2025 | Sep. 30, 2025 | Jun. 30, 2025 | Mar. 31, 2025 | |||||||||||||||||||||||||
| Opened | 49 | 132 | 84 | 61 | 57 | ||||||||||||||||||||||||
| Permanent closures | (1) | (5) | (4) | (2) | (2) | ||||||||||||||||||||||||
| Relocations | - | (1) | (3) | (1) | - | ||||||||||||||||||||||||
| Total | 4,090 | 4,042 | 3,916 | 3,839 | 3,781 | ||||||||||||||||||||||||
| Average restaurant sales | $ | 3,094 | $ | 3,104 | $ | 3,132 | $ | 3,142 | $ | 3,186 | |||||||||||||||||||
| Comparable restaurant sales increase/(decrease) | 0.5 | % | (2.5 | %) | 0.3 | % | (4.0 | %) | (0.4 | %) | |||||||||||||||||||
The following table details partner-operated restaurant unit data for the periods indicated:
| For the three months ended | |||||||||||||||||||||||||||||
| Mar. 31, 2026 | Dec. 31, 2025 | Sep. 30, 2025 | Jun. 30, 2025 | Mar. 31, 2025 | |||||||||||||||||||||||||
| Opened | - | 7 | 2 | - | 2 | ||||||||||||||||||||||||
| Total | 14 | 14 | 7 | 5 | 5 | ||||||||||||||||||||||||
CHIPOTLE MEXICAN GRILL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Below are definitions of the non-GAAP financial measures in this release. The following tables provide a reconciliation of non-GAAP financial measures presented in this release to the most directly comparable financial measures calculated and presented in accordance with GAAP.
Adjusted net income is net income excluding certain legal proceedings, restructuring expenses and stock-based compensation retention.
Adjusted labor is labor expense excluding expenses related to certain legal proceedings.
Adjusted general and administrative expense is general and administrative expense excluding expenses related to restructuring, certain legal proceedings, and stock-based compensation retention.
The adjusted effective income tax rate is the effective income tax rate adjusted to reflect the after-tax impact of non-GAAP adjustments.
Restaurant level operating margin is equal to the revenues generated by our restaurants less direct restaurant operating costs, which consist of food, beverage and packaging, labor, occupancy and other operating costs, expressed as a percent of total revenue. This performance measure primarily includes the costs that restaurant level managers can directly control and excludes other costs that are essential to conduct our business. Management uses restaurant level operating margin as a measure of restaurant performance. Management believes restaurant level operating margin is useful because it highlights trends in our core business that may not otherwise be apparent when relying solely on GAAP financial measures.
Adjusted restaurant level operating margin is equal to the restaurant level operating margin excluding certain legal proceedings, expressed as a percent of total revenue. Management uses adjusted restaurant level operating margin as a measure of restaurant performance. Management believes adjusted restaurant level operating margin is useful because it highlights trends in our core business that may not otherwise be apparent when relying solely on GAAP financial measures.
We present these non-GAAP measures to facilitate a meaningful evaluation of our operating performance across periods. These adjustments are intended to provide greater transparency of underlying performance and to allow investors to evaluate our business on the same basis as management, which uses these non-GAAP measures in evaluating our performance.
Our adjusted net income, adjusted diluted earnings per share, adjusted labor expenses, adjusted general and administrative expenses, adjusted effective income tax rate, restaurant level operating margin, and adjusted restaurant level operating margin measures may not be comparable to other companies’ adjusted measures. These adjustments are not necessarily indicative of what our actual financial performance would have been during the periods presented and should be viewed in addition to, and not as an alternative to, our results prepared in accordance with GAAP. Further details regarding these adjustments are included in the tables below.
CHIPOTLE MEXICAN GRILL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Adjusted Net Income and Adjusted Diluted Earnings per Share
(in thousands, except per share amounts)
(unaudited)
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net income | $ | 302,824 | $ | 386,599 | |||||||
| Non-GAAP adjustments: | |||||||||||
Legal proceedings-Labor(1) | 11,875 | - | |||||||||
| Corporate restructuring costs: | |||||||||||
Recipe for Growth restructuring(2) | 2,140 | - | |||||||||
Legal proceedings-General and administrative(3) | 625 | - | |||||||||
Stock-based compensation(4) | 3,007 | 11,877 | |||||||||
| Total non-GAAP adjustments | 17,647 | 11,877 | |||||||||
Tax effect of non-GAAP adjustments above(5) | (4,249) | (1,676) | |||||||||
| After tax impact of non-GAAP adjustments | 13,398 | 10,201 | |||||||||
| Adjusted net income | $ | 316,222 | $ | 396,800 | |||||||
| Diluted weighted-average number of common shares outstanding | 1,301,859 | 1,360,719 | |||||||||
| Diluted earnings per share | $ | 0.23 | $ | 0.28 | |||||||
| Adjusted diluted earnings per share | $ | 0.24 | $ | 0.29 | |||||||
(1)Estimated liability recognized in labor on the condensed consolidated statements of income for legal matters that we expect to exceed typical costs for legal proceedings.
(2)Cost for restructuring including employee severance, recruitment, other third-party restructuring costs, and stock-based compensation, net of forfeitures.
(3)Estimated liability recognized in general and administrative expenses on the condensed consolidated statements of income for legal matters that we expect to exceed typical costs for legal proceedings.
(4)Stock-based compensation for retention equity awards granted to certain executives in connection with the former CEO's departure.
(5)Adjustments related to the tax effect of non-GAAP adjustments, which were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates.
CHIPOTLE MEXICAN GRILL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Adjusted Labor
(in thousands)
(unaudited)
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Labor | $ | 805,411 | $ | 718,226 | |||||||
| Non-GAAP adjustments: | |||||||||||
Legal proceedings-Labor(1) | (11,875) | - | |||||||||
| Total non-GAAP adjustments | (11,875) | - | |||||||||
| Adjusted labor | $ | 793,536 | $ | 718,226 | |||||||
| Adjusted labor as a percent of total revenue | 25.7% | 25.0% | |||||||||
(1)Estimated liability recognized in labor on the condensed consolidated statements of income for legal matters that we expect to exceed typical costs for legal proceedings.
CHIPOTLE MEXICAN GRILL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Adjusted General and Administrative Expenses
(in thousands)
(unaudited)
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| General and administrative expenses | $ | 203,720 | $ | 172,783 | |||||||
| Non-GAAP adjustments: | |||||||||||
Recipe for Growth restructuring(1) | (2,140) | - | |||||||||
Legal proceedings-General and administrative(2) | (625) | - | |||||||||
Stock-based compensation(3) | (3,007) | (11,877) | |||||||||
| Total non-GAAP adjustments | (5,772) | (11,877) | |||||||||
| Adjusted general and administrative expenses | $ | 197,948 | $ | 160,906 | |||||||
(1)Cost for restructuring including employee severance, recruitment, other third-party restructuring costs, and stock-based compensation, net of forfeitures.
(2)Estimated liability recognized in general and administrative expenses on the condensed consolidated statements of income for legal matters that we expect to exceed typical costs for legal proceedings.
(3)Stock-based compensation for retention equity awards granted to certain executives in connection with the former CEO's departure.
CHIPOTLE MEXICAN GRILL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Adjusted Effective Income Tax Rate
(unaudited)
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Effective income tax rate | 25.4 | % | 22.9 | % | |||||||
Tax impact of non-GAAP adjustments(1) | (0.1) | (0.2) | |||||||||
| Adjusted effective income tax rate | 25.3 | % | 22.7 | % | |||||||
(1)Adjustments related to the tax effect of non-GAAP adjustments, which were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates.
CHIPOTLE MEXICAN GRILL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Restaurant Level Operating Margin
(in thousands)
(unaudited)
| Three months ended March 31, | |||||||||||||||||||||||
| 2026 | Percent of total revenue | 2025 | Percent of total revenue | ||||||||||||||||||||
| Income from operations | $ | 397,063 | 12.9 | % | $ | 479,250 | 16.7 | % | |||||||||||||||
| Non-GAAP Adjustments | |||||||||||||||||||||||
| General and administrative expenses | 203,720 | 6.6 | 172,783 | 6.0 | |||||||||||||||||||
| Depreciation and amortization | 96,718 | 3.1 | 87,211 | 3.0 | |||||||||||||||||||
| Pre-opening costs | 11,641 | 0.4 | 8,210 | 0.3 | |||||||||||||||||||
| Impairment, closure costs, and asset disposals | 9,819 | 0.3 | 6,168 | 0.2 | |||||||||||||||||||
| Total non-GAAP Adjustments | 321,898 | 10.4 | 274,372 | 9.5 | |||||||||||||||||||
| Restaurant level operating margin | 718,961 | 23.3 | 753,622 | 26.2 | |||||||||||||||||||
Legal proceedings-Labor(1) | 11,875 | 0.4 | - | - | |||||||||||||||||||
| Adjusted restaurant level operating margin | $ | 730,836 | 23.7 | % | $ | 753,622 | 26.2 | % | |||||||||||||||
(1)Estimated liability recognized in labor on the condensed consolidated statements of income for legal matters that we expect to exceed typical costs for legal proceedings.
FAQ
How did Chipotle (CMG) perform financially in Q1 2026?
Chipotle’s Q1 2026 revenue rose 7.4% to $3.09 billion, driven mainly by new restaurant openings and modest comparable sales growth. Net income declined to $302.8 million, and diluted EPS fell to $0.23 as higher operating costs compressed margins.
What were Chipotle (CMG) comparable restaurant sales and transactions in Q1 2026?
Comparable restaurant sales increased 0.5% in Q1 2026, as transactions grew 0.6% and average check declined 0.1%. This marked a return to positive transactions, contributing modestly to overall revenue growth alongside continued unit expansion.
How did Chipotle’s margins change in Q1 2026 versus 2025?
Chipotle’s operating margin decreased to 12.9% from 16.7% year over year. Restaurant-level operating margin slipped to 23.3%, or 23.7% on an adjusted basis, as higher food, labor, occupancy and general and administrative costs offset revenue growth.
What is Chipotle (CMG) guiding for full-year 2026?
For 2026, Chipotle anticipates about flat comparable restaurant sales, 350 to 370 new restaurant openings including 10–15 international partner-operated units, and an underlying effective full-year tax rate between 24% and 26% before discrete items.
How much stock did Chipotle repurchase in Q1 2026 and what remains?
Chipotle repurchased $700.8 million of stock in Q1 2026 at an average price of $36.14 per share. As of March 31, 2026, about $1.0 billion remained available under existing share repurchase authorizations from the board.
How many new restaurants did Chipotle open in Q1 2026 and how many had Chipotlanes?
Chipotle opened 49 company-owned restaurants in Q1 2026, including 42 locations with Chipotlanes. The company ended the quarter with 4,090 company-owned restaurants, continuing its focus on drive-thru-enabled formats to support access and convenience.