Chipotle Mexican Grill reported quarterly results for the period ended September 30 that showed mixed performance alongside management optimism about near-term prospects. The company’s shares rose 7% in extended trading following the announcement.
The burrito chain reported fiscal third-quarter net income of $339.9 million, or 27 cents per share, compared to $382.1 million, or 29 cents per share, a year earlier. Net sales increased 9.6% to $3.29 billion, driven primarily by expansion of the restaurant base. However, restaurant-level operating margin contracted to 23.3% from 24.5%. Same-store sales grew 2.1% for locations open at least 13 months, representing the third consecutive quarter of such growth.
Chief Executive Scott Boatwright expressed confidence in the company’s trajectory despite broader industry headwinds. He noted that same-store sales traffic and spending both expanded during the quarter, with low-income consumers increasing spending more than high-income consumers. This outperformance by lower-income diners occurred without significant promotional activity, according to Boatwright. The company opened 84 company-owned restaurants and five international locations operated by licensees during the quarter.
Chief Financial Officer Adam Rymer projected fourth-quarter same-store sales growth of approximately 2%, with management expressing “high confidence” in performance for the remainder of the year. Boatwright stated that although industry trends softened in early October, traffic returned to growth subsequently, and the company felt well-positioned heading into November and December.
Looking beyond the current year, Chipotle reiterated its full-year forecast for low-single-digit percentage same-store sales increases. For 2027, the company projected opening between 340 and 360 new company-owned locations in the U.S. and Canada, along with approximately 15 to 25 international restaurants.
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