Chipotle Mexican Grill’s third-quarter sales grew on new restaurant openings, while lower net income and a narrower restaurant-level operating margin offered a mixed picture of the company’s performance.
Net sales increased 9.6% to $3.29 billion for the fiscal quarter ended Sept. 30, helped by additions to the restaurant base. Net income dropped to $339.9 million, or 27 cents per share, from $382.1 million, or 29 cents, in the same quarter a year earlier. On an adjusted basis, earnings were 27 cents per share, 2 cents below the 29 cents expected by analysts surveyed by LSEG. Revenue matched their $3.29 billion estimate.
Restaurants open for at least 13 months recorded 2.1% comparable-sales growth, with average checks up 1.3%. It was Chipotle’s third consecutive quarter of comparable-sales growth. The chain added 84 company-run restaurants and five international locations operated by licensees. Its restaurant-level operating margin narrowed to 23.3% from 24.5% a year earlier.
Chief Executive Officer Scott Boatwright said sales trends among lower-income customers outperformed those among higher-income customers during the quarter for the first time this year. He said that group spent the most in September, although Chipotle’s promotional activity was at its lowest level of the quarter.
Chief Financial Officer Adam Rymer forecast same-store sales growth of about 2% in the fourth quarter. Chipotle kept its full-year expectation for low-single-digit same-store sales growth. The release followed a timetable EconoTimes had listed in an earlier earnings calendar.
CNBC reported that shares gained 7% in extended trading. The outlet also reported that Chipotle executives said traffic had resumed growing after weakening in early October. Boatwright expressed confidence in the rest of the quarter and said November and December looked favorable, CNBC reported.
For 2027, Chipotle projected 340 to 360 additional company-owned restaurants in the United States and Canada, plus about 15 to 25 international restaurants.
