NEW YORK, July 29, 2026, 18:57 EDT
- Chipotle shares climbed 5.9% in after-hours trading as the company increased its 2026 sales forecast.
- Comparable sales rose by 2.2%, surpassing the 1.32% estimate from LSEG.
- Adjusted net income declined by 7%. Earnings per share remained at a rounded $0.33, supported by a reduced share count.
Shares of Chipotle Mexican Grill NYSE:CMG climbed 5.9% in after-hours trading on Wednesday. The restaurant reported quarterly sales that surpassed expectations, and it raised its full-year guidance. The regular session had ended before the update.
Profit quality declined. Adjusted net income dropped 7% to $418.9 million. Diluted shares decreased 5.3%, mitigating some of the effect on earnings per share.
| Q2 metric | Actual | Pre-release consensus | Year ago |
|---|---|---|---|
| Revenue | $3.349 billion | $3.33 billion | $3.063 billion |
| Adjusted EPS | $0.33 | $0.32 | $0.33 |
| Comparable sales | 2.2% | 1.32% | -4.0% |
Company results; LSEG and WSJ projections prior to release.
The largest outperformance was in comparable sales. Revenue surpassed expectations by about 0.6%. Adjusted EPS was one cent above consensus.
Morningstar analyst Ari Felhandler said, “Positive traffic and average check growth reflect a healthy print.” Consumers are still making selective choices. Reuters
| Operating measure | Q2 2025 | Q1 2026 | Q2 2026 |
|---|---|---|---|
| Comparable sales | -4.0% | 0.5% | 2.2% |
| Transactions | — | 0.6% | 1.0% |
| Average check | — | -0.1% | 1.2% |
| Digital sales mix | 35.5% | 38.6% | 38.3% |
| Company-owned restaurants | 3,839 | 4,090 | 4,186 |
Chipotle reports quarterly results.
Most of the headline growth continued to come from new restaurant openings. The number of stores grew by 9.0% compared to a year ago. Revenue was up 9.3%.
Chipotle launched 100 new company-operated locations in the quarter, with 80 featuring Chipotlanes, which are dedicated digital-order pickup lanes. The company maintained its yearly goal of opening between 350 and 370 restaurants.
Chief Executive Scott Boatwright said, “Our positive results reflect the momentum we’re building.” He pointed to new menu items, loyalty program engagement and improvements in restaurant service. MediaRoom
| Q2 metric | 2025 | 2026 | Change |
|---|---|---|---|
| Food, beverage and packaging expenses | 28.9% | 29.7% | +80 basis points |
| Wage costs | 24.7% | 25.0% | +30 basis points |
| Additional restaurant expenses | 14.0% | 14.9% | +90 basis points |
| Margin at restaurant level | 27.4% | 25.2% | -220 basis points |
| Operating profit margin | 18.2% | 15.7% | -250 basis points |
| Net profit margin | 14.2% | 12.1% | -210 basis points |
All percentages represent portions of revenue, with the exception of restaurant-level margin.
Higher food expenses were driven by beef, freight, and greater protein consumption. Labor costs rose due to higher wages and performance bonuses. Menu price adjustments and lower avocado prices offered limited offset.
Repurchases helped stabilize the EPS comparison. Using the present adjusted profit with the prior year’s diluted share total yields around $0.31. The stated number, once rounded, was $0.33.
The difference is significant. Despite a rebound in sales, underlying profit growth remains unrecovered. Operating income dropped by 6%, and net income decreased by 7.5%.
| First-half cash allocation | 2025 | 2026 | Change |
|---|---|---|---|
| Operating cash flow | $1.118 billion | $1.332 billion | +19% |
| Capital expenditure | $0.305 billion | $0.398 billion | +30% |
| Operating cash flow minus capital spending | $0.813 billion | $0.934 billion | +15% |
| Stock buybacks | $0.997 billion | $1.355 billion | +36% |
| Buybacks as a percentage of cash flow less capex | 123% | 145% | +22 percentage points |
Operating cash flow minus capital expenditures is a straightforward calculation, distinct from the free cash flow that companies report.
Repurchases in the first half were just above operating cash flow. After accounting for capital expenditures, they surpassed cash flow by approximately $421 million.
As of June 30, Chipotle had an additional $1.7 billion approved. This accounted for about 4% of its market capitalization following the close on Wednesday.
A fresh challenge emerged in July, as management reported a slowdown in restaurant traffic following widespread media coverage of a nationwide cyclospora outbreak.
The FDA connected the outbreak to iceberg lettuce from Taylor Farms de Mexico that has been recalled. Chipotle stated that the romaine it uses, sourced from California, was not affected.
| Market tape | Price | Change |
|---|---|---|
| July 22 closing price | $32.20 | — |
| July 29 closing price | $34.24 | +6.3% across five sessions |
| July 29, 18:01 EDT post-market | $36.25 | +5.9% from Wednesday close |
View historical price data and after-hours overview.
As of the dateline, standard U.S. markets had finished trading. Nasdaq’s after-hours trading continued, set to close at 20:00 EDT.
The next key sector test arrives on Thursday morning, when Yum! Brands NYSE:YUM posts results at 07:00 EDT. Analysts will watch Taco Bell performance for signs that outbreak concerns may be affecting the broader category.
Risks: July traffic could stay inconsistent. Rising costs for beef, freight and labor may push back margin improvements. EPS support from buybacks gets more difficult if operating profit declines further.
