Chipotle Mexican Grill (NYSE:CMG – Get Free Report) released its quarterly earnings results on Wednesday. The restaurant operator reported $0.27 earnings per share for the quarter, missing the consensus estimate of $0.29 by ($0.02), FiscalAI reports. The firm had revenue of $3.29 billion for the quarter, compared to the consensus estimate of $3.29 billion. Chipotle Mexican Grill had a net margin of 11.43% and a return on equity of 54.65%. Chipotle Mexican Grill’s quarterly revenue was up 9.6% compared to the same quarter last year. During the same period in the previous year, the company earned $0.29 earnings per share.
Here are the key takeaways from Chipotle Mexican Grill’s conference call:
- Revenue grew 9.6% to $3.3 billion in Q3, with comparable sales up 2.1% and transactions up 0.8%. Management said positive transactions have continued throughout 2026 and reaffirmed its low-single-digit comparable-sales outlook for the full year.
- Restaurant-level margin fell 120 basis points to 23.3%, while adjusted EPS declined 7% to $0.27. Management expects Q4 margins just under 22%, pressured by higher marketing spending, labor and operating costs, brisket-related expenses, and softer sales volume.
- Chipotle reported strong early results from its growth initiatives, including high-efficiency equipment in more than 1,700 restaurants, 24 million active Rewards members, and loyalty sales exceeding 33% of total sales. Pollo Asado, Chili Lime Chips, and family meals also drove incremental transactions and engagement.
- The company continues to expand its footprint, opening 84 company-owned restaurants in Q3 and reaching 1,500 Chipotlanes. It expects 340–360 company-owned openings in the U.S. and Canada in 2027, plus 15–25 partner-operated international restaurants, while entering markets including Mexico, Saudi Arabia, and South Korea.
- Management views catering as a significant future opportunity and plans a national rollout beginning in Q1 2027, but emphasized that execution and avoiding disruption to the core lunch and dinner business remain priorities. Catering and family meals currently account for approximately 3% of sales.
Chipotle Mexican Grill Trading Up 9.1%
CMG traded up $2.60 during midday trading on Thursday, hitting $31.33. 42,433,016 shares of the company were exchanged, compared to its average volume of 18,084,094. The company’s 50 day simple moving average is $33.20 and its 200 day simple moving average is $34.21. The firm has a market capitalization of $39.65 billion, a price-to-earnings ratio of 28.74, a price-to-earnings-growth ratio of 1.67 and a beta of 0.96. Chipotle Mexican Grill has a 1-year low of $27.31 and a 1-year high of $41.42.
Analysts Set New Price Targets
A number of brokerages recently commented on CMG. DA Davidson reaffirmed a “buy” rating and issued a $45.00 target price on shares of Chipotle Mexican Grill in a report on Thursday. Guggenheim reaffirmed a “neutral” rating and issued a $32.00 target price (down from $36.00) on shares of Chipotle Mexican Grill in a report on Thursday. Seaport Research Partners assumed coverage on Chipotle Mexican Grill in a research report on Wednesday, September 16th. They issued a “neutral” rating for the company. Evercore reiterated an “outperform” rating and issued a $47.00 price target (up from $45.00) on shares of Chipotle Mexican Grill in a research report on Thursday, July 30th. Finally, Jefferies Financial Group reaffirmed a “hold” rating and set a $32.00 target price on shares of Chipotle Mexican Grill in a research note on Thursday. Twenty-seven analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $42.47.
View Our Latest Research Report on Chipotle Mexican Grill
Trending Headlines about Chipotle Mexican Grill
Here are the key news stories impacting Chipotle Mexican Grill this week:
- Positive Sentiment: Third-quarter revenue rose 9.6% to $3.29 billion, in line with expectations, while comparable-restaurant sales increased 2.1% and transactions grew for the third consecutive quarter. Value offers and limited-time menu items helped attract diners. Chipotle beats quarterly sales expectations on resilient demand
- Positive Sentiment: Investors responded favorably to signs of a traffic recovery following earlier food-safety concerns. New menu launches, refreshed loyalty benefits and plans to accelerate technology and menu innovation are supporting the turnaround. Chipotle Sales Beat as New Chicken, Chips Bring Diners Back
- Positive Sentiment: Chipotle opened 84 company-owned restaurants during the quarter, and its loyalty program surpassed 24 million members, providing additional long-term growth and customer-engagement potential. Chipotle: 3 Key Takeaways for Long-Term Investors
- Positive Sentiment: Several analysts maintained bullish ratings, including DA Davidson and BTIG Research at $45 targets and Oppenheimer at a $51 target, implying substantial upside based on the supplied reference price. Oppenheimer analyst rating
- Neutral Sentiment: Analyst opinion remains mixed: Citigroup kept a Buy rating while cutting its target to $41, whereas BNP Paribas Exane retained Neutral and reduced its target to $36. Bernstein also lowered its target to $43 from $50. Citigroup price target
- Negative Sentiment: Adjusted earnings were $0.27 per share, below the $0.29 consensus and last year’s $0.29, as higher operating costs, beef prices and increased protein usage pressured margins. Chipotle Q3 earnings miss estimates
- Negative Sentiment: Management’s outlook calls for only modestly higher sales, leaving investors dependent on the fourth-quarter brisket launch, continued traffic gains and successful cost management to sustain the recovery. The rest of Chipotle’s year hinges on brisket
Insider Activity at Chipotle Mexican Grill
In other news, insider Matthew R. Bush sold 2,675 shares of the firm’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $35.75, for a total transaction of $95,631.25. Following the sale, the insider directly owned 21,415 shares in the company, valued at $765,586.25. This trade represents a 11.10% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.45% of the stock is owned by company insiders.
About Chipotle Mexican Grill
Chipotle Mexican Grill, Inc (NYSE: CMG) operates a chain of fast-casual restaurants focused on Mexican-inspired food. Its menu includes burritos, burrito bowls, tacos, quesadillas and salads, with options such as chicken, steak, barbacoa, carnitas, sofritas and vegetables. The company emphasizes preparing food in its restaurants from ingredients it describes as responsibly sourced, including meats raised with attention to animal welfare and produce from selected suppliers.
Founded by Steve Ells in 1993, Chipotle opened its first restaurant in Denver, Colorado.
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