The EPS miss and continued margin compression from labor and G&A inflation are the key negatives, partially offset by improving comps and food cost relief. Watch the Q4 2026 conference call for updates on labor cost trends, the high-efficiency equipment rollout, and whether the 2027 opening target signals a moderation in growth capex.
Price Chart
Executive Summary
Chipotle reported Q3 2026 revenue of $3.29B, up 9.6% YoY and in line with the $3.29B consensus, with comparable restaurant sales rising 2.1% (third consecutive quarter of positive transaction growth). However, GAAP diluted EPS of $0.27 missed the $0.29 consensus by 6.9%, and net income fell 11.0% YoY to $339.9M as operating margin contracted 220 bps to 13.7% due to higher labor, occupancy, and other operating costs. Management maintained its 2026 outlook for low single-digit comp growth and 350-370 new openings, while issuing a 2027 opening target of 340-360 company-owned U.S./Canada restaurants plus 15-25 international units.
Key Financial Metrics
Key Facts
- Q3 2026 total revenue $3.293B, up 9.6% YoY from $3.003B
- Comparable restaurant sales increased 2.1% (1.3% average check, 0.8% transactions)
- GAAP diluted EPS $0.27, down 6.9% YoY from $0.29; missed consensus of $0.29
- Net income $339.9M, down 11.0% YoY from $382.1M
- Operating margin 13.7%, down from 15.9% a year ago
- Restaurant-level operating margin 23.3%, down from 24.5%
- Food, beverage and packaging costs improved to 29.5% of revenue from 30.0%
- Labor costs rose to 25.7% of revenue from 25.2%
- G&A expenses $185.2M, up 26.2% YoY from $146.7M
- Opened 84 company-owned restaurants and 5 international partner-operated restaurants in Q3
- Repurchased $110.0M of stock at average price $34.05 per share; $1.6B remaining under authorization
- 2026 outlook maintained: low single-digit comp growth, 350-370 new openings, 24%-26% tax rate
- 2027 guidance: 340-360 new company-owned U.S./Canada openings, 15-25 international units
Financial Impact
EPS miss of $0.02 vs consensus ($0.27 actual vs $0.29 estimate), net income decline of $42.2M YoY, operating margin contraction of 220 bps
Risk Factors
- Labor cost inflation and wage regulation continue to pressure margins
- G&A expense growth outpacing revenue growth (26.2% vs 9.6%)
- Operating margin has declined for five consecutive quarters (from 16.7% in Q1 2025 to 13.7%)
- Share repurchase pace slowed sharply in Q3 ($110M vs $700.8M in Q1 2026)
- International expansion into new markets carries execution risk
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001058090-26-000103 |
| Document: cmg-20261028.htm | 0001058090-26-000103 |
| Document: 0001058090-26-000103-index-headers.html | 0001058090-26-000103 |
| Document: 0001058090-26-000103-index.html | 0001058090-26-000103 |
| Document: 0001058090-26-000103.txt | 0001058090-26-000103 |
| 8-K Data (Synthetic) | 0001058090-26-000103 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 28, 2026 2d ago | 8-K | No price | awaiting T+1 | awaiting T+1 | No price |
Oct 28, 2026 2d ago | Press Release | $31.28 $31.89 | ▼ −1.95% | ▼ −3.72% | $31.89 (−1.95%) |
Oct 22, 2026 8d ago | Institutional Cluster | $27.52 $28.41 | ▲ +3.23% | ▲ +2.52% | $31.89 (+15.88%) |
Aug 5, 2026 12w ago | 8-K | $34.50 $33.71 | ▼ −2.29% | ▼ −2.13% | $31.89 (−7.57%) |
Jul 8, 2026 16w ago | 8-K | $34.60 $35.25 | ▲ +1.87% | ▲ +1.45% | $31.89 (−7.83%) |
Apr 29, 2026 26w ago | 8-K | $33.97 $32.97 | ▼ −2.94% | ▼ −3.16% | $31.89 (−6.11%) |
Feb 28, 2026 34w ago | Institutional Cluster | $36.70 $36.93 | ▲ +0.63% | ▲ +1.55% | $31.89 (−13.10%) |
US Market Status
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