Global Finance News
30 Apr 2026, 17:12
Chipotle Mexican Grill reported first-quarter 2026 results showing solid revenue growth but margin pressure and declining earnings.
Revenue increased 7.4% year-over-year to $3.1 billion, supported by new restaurant openings and a modest 0.5% rise in comparable sales. Transaction growth (+0.6%) helped offset a slight decline in average ticket size. Digital sales remained strong, accounting for 38.6% of total revenue.
However, profitability weakened. Operating margin fell to 12.9% from 16.7%, while adjusted restaurant-level margin declined to 23.7%. Diluted EPS dropped to $0.23, down from $0.28 a year earlier, reflecting higher costs and margin compression.
Cost pressures were driven by inflation in beef, freight, and wages, along with higher labor and operating expenses. Despite this, the company continued expanding, opening 49 new locations during the quarter, most featuring Chipotlane drive-thru formats.
Looking ahead, Chipotle expects full-year comparable sales to remain roughly flat and plans to open 350–370 new restaurants in 2026.
Source: PR Newswire
Revenue increased 7.4% year-over-year to $3.1 billion, supported by new restaurant openings and a modest 0.5% rise in comparable sales. Transaction growth (+0.6%) helped offset a slight decline in average ticket size. Digital sales remained strong, accounting for 38.6% of total revenue.
However, profitability weakened. Operating margin fell to 12.9% from 16.7%, while adjusted restaurant-level margin declined to 23.7%. Diluted EPS dropped to $0.23, down from $0.28 a year earlier, reflecting higher costs and margin compression.
Cost pressures were driven by inflation in beef, freight, and wages, along with higher labor and operating expenses. Despite this, the company continued expanding, opening 49 new locations during the quarter, most featuring Chipotlane drive-thru formats.
Looking ahead, Chipotle expects full-year comparable sales to remain roughly flat and plans to open 350–370 new restaurants in 2026.
Source: PR Newswire
