Chipotle (CMG) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 rose 7.4% year-over-year to $3.1 billion, driven by new restaurant openings and positive transaction growth, with comparable sales up 0.5%.

• Digital sales accounted for 38.6% of total sales, reaching $1.2 billion.

• Adjusted diluted EPS declined 17% year-over-year to $0.24, while net income fell to $302.8 million.

• 49 new company-owned restaurants opened in Q1, with 42 featuring Chipotlanes; on track for 350–370 openings in 2026.

• Innovation in equipment, menu, and digital engagement, along with new leadership hires, supported productivity and customer engagement.

Financial highlights

• Comparable restaurant sales increased 0.5% year-over-year.

• Adjusted restaurant-level margin was 23.7%, down from 26.2% year-over-year; operating margin declined to 12.9%.

• Food, beverage, and packaging costs rose to 29.6% of revenue, mainly due to beef and freight inflation.

• Labor costs increased to 26.1% of revenue, with adjusted labor at 25.7%, driven by wage inflation and higher benefits.

• $700–$701 million was used for share repurchases in Q1.

Outlook and guidance

• Full-year 2026 comparable restaurant sales expected to be about flat, with Q2 comps guided to +1%.

• 350–370 new restaurant openings planned, including 10–15 international partner-operated units; ~80% to include Chipotlanes.

• Pricing expected to be 1.5% in Q2 and 1%–2% for the full year; cost of sales inflation anticipated at mid-single digits in Q2.

• Effective tax rate for 2026 expected between 24% and 26%.

• Ongoing focus on digital sales and operational innovation.