Chipotle Q3 revenue slightly beats estimates on news restaurant openings

Overview

• US fast-casual restaurant's Q3 revenue rose 9.6%, slightly beating analyst expectations

• Adjusted EPS for Q3 fell 6.9% and missed analyst expectations

• Revenue growth driven mainly by new restaurant openings and modest comparable sales gains

Outlook

• Chipotle expects 2026 full-year comparable restaurant sales growth in the low single-digit range

• Company plans 350 to 370 new restaurant openings in 2026, including 10 to 15 international partner-operated locations

• Chipotle estimates 2026 full-year effective tax rate between 24% and 26% before discrete items

Result Drivers

• NEW RESTAURANT OPENINGS - Co said revenue growth was primarily driven by new restaurant openings

• MODEST COMPARABLE SALES - Comparable restaurant sales rose 2.1%, with higher average check and more transactions

• HIGHER LABOR COSTS - Labor costs rose due to wage inflation, performance bonuses, and increased staffing for operations and promotions

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 13 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the restaurants & bars peer group is "buy"

• Wall Street's median 12-month price target for Chipotle Mexican Grill, Inc. is $42.25, about 51% above its October 27 closing price of $27.98

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 27 three months ago

Reuters Recommended Reads

• Oct 28 - Chilis owner Brinker posts higher Q1 revenue on menu price hike; raises guidance

• Oct 27 - Cheesecake Factory beats Q3 revenue estimates on strong traffic, menu innovations

• Oct 28 - Wingstop Q3 revenue rises on corporate store openings

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)