Chipotle Mexican Grill (CMG) Q3 2026 Earnings
Adjusted EPS excludes $4.3 million restaurant asset impairment and $1.5 million stock-based compensation for retention awards tied to the former CEO's departure (after-tax impact $4.7 million); GAAP and adjusted diluted EPS both $0.27.
How Did CMG Stock React to Q3 2026 Earnings?
Did CMG Beat Earnings? Q3 2026 Results
No. Chipotle Mexican Grill reported Q3 2026 earnings of $0.27 a share on Oct 28, 2026, missing the $0.29 consensus estimate by 7.2%. Revenue was $3.3B against a $3.3B estimate.
Chipotle Mexican Grill delivered a mixed third quarter for fiscal 2026, posting adjusted diluted EPS of $0.27 against a consensus estimate of $0.29, missing by 7.15% and snapping a six-consecutive-quarter streak of beating EPS estimates, even as revenue of $3.29 billion edged past expectations by 0.24% on 9.7% year-over-year growth. The earnings shortfall traced most directly to margin compression, with operating margin sliding to 13.7% from 15.9% a year earlier as labor costs rose to 25.7% of revenue and G&A expenses jumped to $185.23 million from $146.74 million, weighed down by stock-based compensation, performance bonuses, and costs tied to the former CEO's departure. Revenue momentum was real but modest, anchored by 84 new restaurant openings and a 2.1% comparable sales gain built on a third consecutive quarter of positive transaction growth, a trend management cited as evidence that its Recipe for Growth strategy is gaining traction. Options traders had positioned bearishly ahead of the print, and the numbers gave them reason. For 2026, Chipotle maintained its outlook for low single-digit comparable sales growth and 350 to 370 new restaurant openings.
- New restaurant openings drove most of the 9.6% revenue growth
- Comparable restaurant sales up 2.1%: average check up 1.3%, transactions up 0.8%
- Digital sales rose to 38.8% of food and beverage revenue from 36.7%
- Food, beverage and packaging costs fell to 29.5% of revenue on menu price increases, tariff relief and favorable limited-time offer mix
- Labor costs rose to 25.7% of revenue on lower sales volumes, wage inflation, bonuses, extra promotional labor and insurance costs
- G&A rose to $185.2 million on stock-based compensation, performance bonuses and outside services for corporate initiatives
- Effective tax rate rose to 25.6% from 23.1% on nondeductible expenses and lower tax credits
- Interest and other income fell to $5.2 million from $19.8 million
“Three consecutive quarters of positive comparable transaction growth demonstrates that our Recipe for Growth strategy is working.”
Chipotle Mexican Grill CEO, on the earnings call
What Is Chipotle Mexican Grill's Outlook?
For 2026, management continues to anticipate: - Full-year comparable restaurant sales growth in the low single-digit range. - 350 to 370 new restaurant openings, including 10 to 15 international partner-operated restaurants, with around 80% of new company-owned restaurants including a Chipotlane. - An underlying full-year effective tax rate of 24% to 26% before discrete items. For 2027, management anticipates: - 340 to 360 new company-owned restaurant openings in the U.S. and Canada. - Around 15 to 25 company-owned and partner-operated restaurants outside the U.S. and Canada.
CMG YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $3.3B | $3.0B | +9.7% |
| Gross Profit | $768.2M | $735.6M | +4.4% |
| Operating Income | $452.0M | $477.2M | −5.3% |
| Net Income | $339.9M | $382.1M | −11.1% |
CMG Revenue by Segment
When Does Chipotle Mexican Grill Report Next?
Figures from SEC filings and company reports. Not investment advice.