Chipotle Mexican Grill (CMG) Q1 2026 earnings

Chipotle Mexican Grill On Wednesday it reported surprising growth in same-store sales, suggesting the burrito chain may be starting to put last year’s problems behind it.

The restaurant company’s shares rose by about 3% in extended trading.

Here’s what the company reported compared to what Wall Street was expecting, based on a survey of analysts conducted by LSEG:

• EPS: 24 cents were revised, in line with expectations
• profit: $3.09 billion versus $3.07 billion expected

Chipotle reported first-quarter net income of $302.8 million, or 23 cents per share, down from $386.6 million, or 28 cents per share, a year earlier. Higher effective tax rates, wage inflation and higher beef prices impacted its margins during the quarter.

Excluding legal expenses, restructuring costs and other items, the company achieved a profit of 24 cents per share.
Net sales It rose 7.4% to $3.09 billion, supported by new store openings.

The company’s same-store sales rose 0.5%, reversing fourth-quarter declines. Wall Street had expected same-store sales to shrink 0.7%, based on StreetAccount estimates.

CEO Scott Boatwright said in a statement that results exceeded Chipotle’s expectations for the quarter. Same-store sales momentum continued in the second quarter, he said on the company’s earnings conference call.

To attract diners, Chipotle has been balancing new menu items — like cilantro lime salsa — with bringing back limited-time favorites, like Al Pastor chicken. Combined with the loyalty program, the menu innovation has helped attract younger consumers, a group that has stopped buying Chipotle as has often happened in the past year and packing lunches instead.

Traffic to Chipotle restaurants rose 0.6%. In the same period last year, the chain saw transactions decline by 2.3%, an early warning sign that diners were not visiting restaurants as frequently.

While many restaurant chains saw traffic and sales weaken in 2024, Chipotle initially bucked the trend. But the past year has been tough for the fast-food chain and other similarly priced restaurants. Customers, concerned about the broader economy and their disposable income, weren’t going to her restaurants as often to save money.

Chipotle addressed the downturn by trying to improve restaurant operations and adding new menu items. The company announced Monday the appointment of Fernando Machado, a Restaurant Brands International alumnus, as the brand’s newest CEO.

For the full year, the company reiterated its previous forecast of flat same-store sales. Chief Financial Officer Adam Reimer said the outlook is “conservative,” citing unpredictable consumer trends.

The economy has become more volatile since Chipotle’s last earnings report. The US war with Iran has caused fuel prices to rise, and a few companies have chosen to raise their full-year forecasts in recent weeks. Chipotle executives said sales declined in March, after the conflict began.

The war in the Middle East also means Chipotle may open fewer restaurants this year than expected, according to Boatwright. The company has entered into a development deal with Alshaya Group to operate sites in the region as part of its broader strategy to expand internationally.