Chipotle (CMG) Q2 2026 earnings summary

Executive summary

• Revenue grew 9.3% year-over-year to $3.3 billion in Q2 2026, driven by new restaurant openings, positive comparable sales, menu innovation, digital engagement, and operational improvements.

• The "Recipe for Growth" strategy, emphasizing operational excellence, technology, brand messaging, talent development, and global expansion, continues to deliver results.

• Over 1,000 restaurants now equipped with high-efficiency equipment, targeting 2,000 by year-end, improving throughput and guest satisfaction.

• Digital sales accounted for 38.3% of total revenue, up from 35.5% a year ago, with loyalty and menu innovation driving higher engagement.

• Opened 101 new restaurants in Q2 2026, including international expansion in Europe, Mexico, Middle East, and plans for South Korea and Singapore.

Financial highlights

• Comparable restaurant sales increased 2.2% year-over-year, with transaction comps up 1.0% and average check up 1.2%.

• Restaurant-level margin was 25.2%, down from 27.4% year-over-year; operating margin declined to 15.7%.

• Adjusted diluted EPS was $0.33, flat year-over-year; adjusted net income for Q2 2026 was $418.9 million.

• Cost of sales rose to 29.7% of revenue, mainly due to beef and freight inflation; labor costs increased to 25.0% of revenue, driven by wage inflation and bonuses.

• Ended Q2 2026 with $228.2 million in cash and equivalents after $630.7 million in share repurchases; $1.7 billion remains authorized.

Outlook and guidance

• Full-year 2026 comparable sales growth outlook raised to low single digits.

• Q3 comps anticipated around +1%, factoring in a 200 basis point headwind from Cyclospora concerns.

• Plans for 350–370 new restaurant openings in 2026, including 10–15 international partner-operated units; about 80% will feature a Chipotlane.

• Menu pricing impact expected to rise to mid-2% in Q3, with full-year pricing at the high end of the 1%-2% range.

• Estimated full-year effective tax rate between 24% and 26%.