The numbers and the near-term hits
Chipotle met revenue expectations at $3.29 billion but missed on adjusted earnings at 27 cents per share, short of the 29 cents analysts polled by LSEG forecast. In the fiscal third quarter, net income totaled $339.9 million, which works out to 27 cents per share, versus $382.1 million and 29 cents per share in the prior year.
Profitability at the store level slipped, with restaurant-level operating margin easing to 23.3% from 24.5%. On a basis excluding restaurant asset impairment and stock-based compensation, earnings were 27 cents per share.
What moved sales and traffic
Growth leaned on new units. Revenue from sales increased 9.6% to $3.29 billion, supported by the opening of 84 company-run restaurants along with five overseas locations operated by licensees during the quarter.
Comparable sales climbed for a third consecutive quarter. Sales at stores that had been operating for 13 months or more were up 2.1%, supported by a 1.3% uptick in average check.
Earnings swings and margin pressures remind investors that information and timing matter. We're hosting our first ever investor livestream on 11/17 to show you how to use ChatGPT and Claude to invest like a pro, hosted by Briefs Finance CEO Jaspreet Singh. Save your seat.
Operational disruptions and outlook
Momentum softened in the back half of July as customers grew cautious about raw lettuce amid cyclospora concerns, though the company said its own supply was never linked to an outbreak. In August, Chipotle temporarily removed jalapeños from Minnesota restaurants after learning that supply there was potentially tied to a salmonella outbreak.
For the full year, the company reiterated that it expects same-store sales to grow in the low single digits. Looking to 2027, Chipotle plans to add 340 to 360 more corporate-operated units across the U.S. and Canada, plus roughly 15 to 25 restaurants internationally.
Smarter tools can help investors find clarity when fundamentals and sentiment shift. On 11/17, our CEO Jaspreet Singh goes live for our first ever investor livestream on how to use ChatGPT and Claude to invest like a pro. Register to join him.
