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Chipotle Q3 revenue slightly beats estimates on news restaurant openings

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Beat*

$3.29 bln

$3.28 bln (28 Analysts)

Q3 Adjusted EPS

Miss

$0.27

$0.29 (30 Analysts)

Q3 EPS

$0.27

Q3 Comparable Restaurant Sales Growth

2.10%

Q3 Operating Margin

13.70%

*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.)

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