New York, February 4, 2026, 05:07 EST — Premarket
- Chipotle shares climbed about 1.7% in premarket trading, bouncing back from a roughly 7% drop after Tuesday’s close
- The burrito chain forecasts flat comparable sales for 2026 and plans to raise menu prices by 1%–2%
- Chipotle reported roughly $3.0 billion in fourth-quarter revenue, with comparable sales dropping 2.5%
Chipotle Mexican Grill shares climbed 1.7% to $39.17 in early trading Wednesday, bouncing back after the stock fell roughly 7% following the company’s cautious 2026 forecast a day earlier. (Reuters)
The forecast is crucial since investors rely heavily on restaurant chains for up-to-the-minute insights into discretionary spending. Chipotle markets itself as “better fast food,” yet its foot traffic remains closely linked to how consumers manage tight grocery and rent costs.
Chipotle plans to increase menu prices by 1% to 2% this year but still forecasts flat comparable restaurant sales — a crucial measure that excludes the impact of new locations by focusing on stores open at least 13 months. CFO Adam Rymer warned analysts that “margins in 2026 will be under pressure,” noting the company is choosing to absorb some inflation rather than raise prices too sharply, aiming to maintain its value image. (Reuters)
Chipotle reported a 4.9% increase in total revenue for the fourth quarter, reaching roughly $3.0 billion. However, comparable restaurant sales dipped 2.5%, the company said. Transactions fell 3.2% but were partially offset by a 0.7% rise in the average check. Digital sales made up 37.2% of food and beverage revenue. (Chipotle InvestorRoom)
Margins took a hit as traffic declined. The restaurant-level operating margin, which tracks store profitability before corporate expenses, dropped to 23.4% from 24.8% year-over-year. Meanwhile, the overall operating margin slipped to 14.1% from 14.6%, the company reported. (Chipotle InvestorRoom)
Cost pressure remains front and center. Chipotle highlighted inflation in beef and chicken prices, noting wage hikes and declining volumes have driven labor costs up as a percentage of revenue. Reuters also reported U.S. beef prices hit record highs after droughts shrank the cattle herd to its smallest size in 75 years. (Chipotle InvestorRoom)
The chain expanded its footprint by opening 132 company-owned restaurants during the quarter, 97 of which featured a Chipotlane drive-thru pickup lane, it reported. Looking ahead to 2026, Chipotle anticipates launching 350 to 370 new locations, including 10 to 15 international partner-operated restaurants. (Chipotle InvestorRoom)
Chipotle bought back $741.6 million worth of shares this quarter, paying an average of $34.14 each. The company still has $1.7 billion available for repurchases under board authorization as of Dec. 31. (Chipotle InvestorRoom)
Ari Felhandler, an analyst at Morningstar, noted that the pricing strategy and brand investment might “benefit the firm’s value proposition,” but warned it could “crimp near-term margins” since Chipotle hasn’t fully passed on food and labor inflation. (Reuters)
Competitors are battling for the same customers, and discounting has returned in segments of fast food and fast casual. Chipotle, however, is focusing more on operational improvements and marketing efforts instead of deep discounting, aiming to retain price-conscious diners. (Barron’s)
That said, the outlook turns risky if traffic continues to fall. A modest price increase might fail to offset rising beef and labor expenses, while stagnant sales offer little room if customers tighten their belts or rivals ramp up promotions to grab share. (Reuters)
Traders are eyeing if the premarket gains stick when the market opens at 9:30 a.m. ET. Attention will also turn to Chipotle’s upcoming annual report on Form 10-K, expected in early February, for more insight on costs and demand. (Chipotle InvestorRoom)
