Chipotle Mexican Grill Inc. (NYSE:CMG) shares are trading higher Thursday after the company reported third-quarter results Wednesday after the market closed, with revenue beating expectations.
- Chipotle stock is showing exceptional strength. Why is CMG stock surging?
Chipotle Beats on Revenue, Misses on Earnings per Share
Chipotle reported third-quarter adjusted earnings per share of 27 cents, missing the consensus estimate of 29 cents. It reported revenue of $3.293 billion, up 9.6% from a year earlier, beating the consensus estimate of $3.285 billion. Comparable restaurant sales rose 2.1%, with average check up 1.3% and transactions up 0.8%. Operating margin fell to 13.7% from 15.9%, and restaurant-level operating margin fell to 23.3% from 24.5%. Diluted earnings per share fell 6.9% to 27 cents from 29 cents. Chipotle opened 84 company-owned restaurants, 53 of them with a Chipotlane, and five international partner-operated restaurants.
“Three consecutive quarters of positive comparable transaction growth demonstrates that our Recipe for Growth strategy is working,” said Scott Boatwright, Chipotle’s CEO.
Chipotle Enters Three New Markets and Grows Digital to 38.8% of Sales
Chipotle entered three new markets in the quarter: Mexico, Saudi Arabia and South Korea. Digital sales were $1.3 billion, or 38.8% of total sales, up from 36.7% a year earlier. Loyalty members reached 24 million and accounted for a record 33% of sales. For 2027, management plans 340 to 360 new company-owned restaurants in the U.S. and Canada.
Chipotle Reaffirms Its 2026 Outlook
Chipotle continues to expect full-year 2026 comparable restaurant sales growth in the low single digits and 350 to 370 new restaurant openings, including 10 to 15 international partner-operated restaurants. It also expects an underlying full-year effective tax rate of 24% to 26% before discrete items.
Chipotle Shares Trade Higher
CMG Price Action: At the time of publication, Chipotle shares are trading 7.38% higher at $30.85, according to data from Benzinga Pro.
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