Chipotle Mexican Grill reported third-quarter earnings for the period ended Sept. 30, with results that mixed positive traffic trends against margin pressures. The company’s stock gained 7% in extended trading following the earnings announcement and CEO commentary.
Net income declined to $339.9 million, or 27 cents per share, from $382.1 million, or 29 cents per share, in the year-ago period. Restaurant-level operating margin contracted from 24.5% to 23.3%. However, net sales increased 9.6% to $3.29 billion, driven primarily by new restaurant openings. The company opened 84 company-owned restaurants and five international locations during the quarter.
Same-store sales at locations open at least 13 months grew 2.1%, marking the third consecutive quarter of expansion in this metric. The chain achieved this growth despite navigating supply-related challenges earlier in the quarter, including concerns about raw lettuce linked to cyclospora and a temporary removal of jalapenos from Minnesota restaurants following a potential salmonella connection. CEO Scott Boatwright highlighted that low-income consumers outperformed high-income customers during the quarter for the first time this year, noting this strength occurred in September when promotional activity was at its lowest point.
Looking forward, management expressed confidence in fourth-quarter performance, with the CFO projecting same-store sales growth of approximately 2% for that period. Boatwright stated the company feels “very confident” about November and December results, noting that traffic has returned to growth following softness in early October. For the full year, the company reiterated its guidance for low-single-digit same-store sales growth.
The company projected opening between 340 and 360 new company-owned locations in the U.S. and Canada for 2027, along with 15 to 25 international restaurants. Management attributed confidence to its “recipe for growth strategy,” stating that initiatives were building momentum and providing tools to compete across various consumer environments.
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