Chipotle Mexican Grill reports stronger Q3 traffic growth

Chipotle Mexican Grill reported continued customer traffic growth in the third quarter ended September 30, although higher operating costs weighed on profitability. The company said in its October 28 results release that comparable restaurant sales increased 2.1% in the quarter.

Traffic Growth Continues

The increase in comparable sales included a 1.3% rise in average check and a 0.8% increase in transactions. Chipotle said the quarter marked its third consecutive period of positive comparable transaction growth, suggesting that its menu, digital and promotional initiatives are attracting more visits.

Total revenue rose 9.6% year over year to 3.3 billion US dollars. New restaurant openings provided the main contribution, while comparable restaurant sales added a smaller share. Digital sales represented 38.8% of food and beverage revenue, up from 36.7% a year earlier.

Margins Face Cost Pressure

Operating margin narrowed to 13.7% from 15.9% in the year-earlier quarter. Restaurant-level operating margin also declined to 23.3% from 24.5%, as labor, wage inflation, performance bonuses, insurance and higher other operating costs offset the benefit of menu pricing and lower food, beverage and packaging costs.

Net income fell to 339.9 million US dollars from 382.1 million US dollars. Diluted earnings per share and adjusted diluted earnings per share were both 0.27 US dollars, compared with 0.29 US dollars a year earlier. The adjusted figure excludes restaurant asset impairment and specified retention-related stock compensation.

Expansion Remains A Priority

Chipotle opened 84 company-owned restaurants during the quarter, including 53 with a Chipotlane, and added five international partner-operated locations. Management continues to expect 350 to 370 new restaurants in 2026, with around 80% of new company-owned sites including a Chipotlane.

For 2027, the company expects 340 to 360 new company-owned restaurants in the United States and Canada, alongside 15 to 25 company-owned and partner-operated restaurants outside those markets. Management also maintained its outlook for low-single-digit comparable restaurant sales growth in 2026.

The real-time quote of Chipotle Mexican Grill stock was 28.53 euros on Lang & Schwarz at 8:45 p.m. CET on Friday, October 30.

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