Chipotle Mexican Grill
Q1 2026 Earnings
Non-GAAP adjustments include $11.875 million in legal proceedings costs in labor, $2.140 million in Recipe for Growth restructuring costs, $0.625 million in legal proceedings in G&A, and $3.007 million in retention stock-based compensation, totaling $17.647 million pre-tax ($13.398 million after tax).
Market Reaction
S&P 500 over the same 30 days: +5.69%.
Did CMG Beat Earnings? Q1 2026 Results
Chipotle Mexican Grill delivered a mixed but ultimately resilient first quarter for fiscal 2026, edging past Wall Street expectations on the bottom line even as margin pressures weighed heavily on the overall picture. The Newport Beach-based chain posted adjusted diluted EPS of $0.24, nudging ahead of the $0.24 consensus estimate by 1.39% and extending its streak of beating analyst EPS forecasts to four consecutive quarters. Revenue climbed 7.4% year over year to $3.09 billion, supported by 49 new restaurant openings and a return to positive transaction growth, though a modest 0.5% comparable restaurant sales gain signaled a cautious consumer environment. The headline story, however, was margin compression: operating margin contracted sharply to 12.9% from 16.7% a year ago, driven by wage inflation, elevated beef and freight costs, and a biennial All Managers Conference that inflated G&A meaningfully. Looking ahead, management guided for roughly flat comparable sales and 350 to 370 new openings in 2026, framing the quarter as a transitional period rather than a structural setback.
- Return to positive transaction growth of 0.6% driving 0.5% comparable restaurant sales increase
- New restaurant openings (49 in Q1, 42 with Chipotlane)
- Digital sales represented 38.6% of food and beverage revenue
- Menu price increases partially offset inflation headwinds
“Our first quarter exceeded expectations as we advanced our Recipe for Growth strategy, delivering tangible progress across operations, digital, menu innovation, people, and development.”
Chipotle Mexican Grill CEO, on the earnings call
Forward Guidance & Outlook
For full year 2026, management anticipates: comparable restaurant sales to be about flat; 350 to 370 new restaurant openings, including 10 to 15 international partner-operated restaurants, with approximately 80% of company-owned restaurants featuring a Chipotlane; and an estimated underlying effective full year tax rate between 24% and 26% before discrete items.
CMG YoY Financials
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Figures from SEC filings and company reports. Not investment advice.