Chipotle Mexican Grill released its fiscal third-quarter financial results, posting earnings that fell short of Wall Street projections despite some positive operational metrics. The company reported net income of $339.9 million, or 27 cents per share, representing a decline from $382.1 million, or 29 cents per share, in the prior-year period. The restaurant-level operating margin contracted to 23.3% from 24.5% year-over-year.
Total net sales increased 9.6% to $3.29 billion, driven primarily by expansion efforts. The chain opened 84 company-owned restaurants and five international locations operated by licensees during the quarter. However, profitability pressures emerged as same-store sales growth, while positive at 2.1%, was bolstered mainly by a 1.3% increase in average transaction value rather than traffic gains.
The quarter occurred against a backdrop of food safety headwinds. In mid-July, the company acknowledged that consumer concerns about raw lettuce consumption, prompted by cyclospora concerns, dampened sales momentum, though Chipotle noted its own supplies were not implicated in any outbreak. Additionally, in August, the chain temporarily removed jalapenos from Minnesota locations after identifying a potential link to a salmonella outbreak in its supply chain.
Despite these challenges, Chipotle managed to report same-store sales growth for its third consecutive quarter, marking a recovery from traffic challenges experienced in the prior year. Looking forward, management reiterated its full-year guidance projecting same-store sales growth in the low single-digit percentage range.
For 2027, the company provided expansion guidance indicating plans to open between 340 and 360 new company-owned locations in the United States and Canada, along with approximately 15 to 25 international restaurants.
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