Chipotle Mexican Grill, Inc. (CMG)

Chipotle reported third-quarter 2026 revenue of $3.3 billion on 28 October, up 9.6 percent from a year earlier 1. Same-store sales, which the company calls comparable restaurant sales, rose 2.1 percent, made up of a 1.3 percent rise in the average check and a 0.8 percent rise in transactions 1.

Profit margins narrowed 1. Operating margin, the share of revenue left after running costs, was 13.7 percent against 15.9 percent a year earlier 1. Net income was $339.9 million, down from $382.1 million 1.

The company said the extra revenue came mainly from new restaurants and, to a lesser extent, from comparable sales 1. Labor was 25.7 percent of revenue against 25.2 percent, which it tied to lower sales volumes, higher pay and extra staff for promotions 1. Food, beverage and packaging costs eased to 29.5 percent of revenue from 30.0 percent, helped by menu price increases and tariff relief 1.

Chief executive Scott Boatwright called it a third straight quarter of positive transaction growth and pointed to entry into three new markets 1. The open question is whether margins recover as the company keeps opening restaurants, a point the quarterly report on Form 10-Q is due to detail 1.

Steve Ells opened the first Chipotle in Denver in 1993 57. McDonald's made an initial investment in 1998 and held a majority stake by 2001 7.

Chipotle grew from 18 stores to 540 by the time McDonald's sold out in 2006 7. Ells said the two parted because McDonald's wanted to focus on its core business 7. Chipotle also went public in an initial public offering 7.

The company then tried other concepts 4. ShopHouse Southeast Asian Kitchen opened in 2011 and grew to 15 restaurants 4. Tasty Made, a burger test, opened in October 2016 4.

The company later said ShopHouse and Tasty Made did not reach the sales and profit that would justify more investment 5. It booked a $14.5 million non-cash impairment on ShopHouse in 2016 5.

The sharpest break came with food safety 4. In late October and early November 2015, illnesses from E coli bacteria were tied to a number of restaurants, first in Washington and Oregon and then in as many as 12 other states 4.

In the week of December 7, 2015, a separate norovirus case at a restaurant in Brighton, Massachusetts made matters worse 4. The company said its sales and profit were severely hurt through 2016 4.

Leadership changed to repair the business 5. Brian Niccol joined as chief executive in March 2018, with founder Steve Ells moving to executive chairman 5. The Associated Press said Chipotle had called Taco Bell chief Niccol to turn things around 8.

In October 2018 Chipotle launched its loyalty program, Chipotle Rewards, in three test markets 5.

Growth then resumed on digital ordering and new restaurants 12. Revenue was $7.5 billion in 2021, up 26.1 percent from $6.0 billion in 2020, driven by comparable sales and, to a lesser extent, new restaurants 12. It reached $9,871.6 million in 2023 and $11,313.9 million in 2024 6.

In 2024 Chipotle split its stock 50 for 1 on 26 June 6. The first licensed restaurants, run with the Alshaya Group, opened in Kuwait and Dubai that year 6. In August Niccol left to lead Starbucks, and Chipotle said chief operating officer Scott Boatwright would become interim chief executive 8.

In 2025 sales growth came from new restaurants, not from busier existing ones 3. Revenue rose 5.4 percent to $11.9 billion while comparable sales fell 1.7 percent, with transactions down 2.9 percent 3. The company's answer was its Recipe for Growth strategy 3.

The restaurants

Chipotle owns and runs restaurants serving burritos, burrito bowls, quesadillas, tacos and salads 3. At the end of 2025 it owned 3,938 in the U.S. and 104 abroad, plus 14 partner-operated restaurants abroad 3. By 30 September 2026 there were over 4,200 across the U.S., Canada, the United Kingdom, France, Germany, Mexico, the Middle East and South Korea 1.

Nearly all revenue is food and beverage sales, which were $11,866.1 million in 2025 against $11,247.4 million in 2024 3. Delivery service revenue was $59.6 million 3. Menu prices rose 2.1 percent over the year 3.

Digital orders and Chipotlanes

Digital sales, orders through the website, app or delivery services, were 36.7 percent of food and beverage revenue in 2025 3 and 38.8 percent in the third quarter of 2026 1. A Chipotlane is the drive-through lane for picking up digital orders 3. Of 84 restaurants opened in the third quarter, 53 had one 1.

People and plants

Chipotle employed 130,301 people at the end of 2025, 127,116 of them in the U.S. 3. Scott Boatwright is chief executive, and Scott Maw is chairman 19. On 14 September 2026 the board added Sabir Sami, a former KFC chief executive, making 11 directors, 10 of them independent 9.

It leases its head office in Newport Beach and nearly all restaurant sites, and owns 17 properties 3.

Rivals and problems

The annual report lists competition, including from outside the restaurant industry, among its risks 3.

A shareholder class action, the Stradford case, alleges misleading statements about portion sizes 11. A court dismissed the first amended complaint with leave to amend, and plaintiffs refiled in January 2026 3.

The umbrella, in words

Chipotle runs one restaurant brand, Chipotle Mexican Grill 3. Its list of significant subsidiaries includes Chipotle Mexican Grill Canada Corp., Chipotle Mexican Grill UK Limited, Chipotle Services, LLC and CMG Licensing, LLC 10.

On stakes, Chipotle owns about 13.5 percent of Tractor Beverages and has board representation there 3. It invested in the Series B preferred stock of Hyphen and holds a minority interest in Nuro 3. By contract, the Alshaya Group runs its partner-operated restaurants in the Middle East 3.

About 2,652 shareholders were of record on 30 January 2026 3.

In July the company raised its full year comparable sales guidance 2. For 2026 it expects comparable sales growth in the low single digits and 350 to 370 new restaurants, including 10 to 15 partner-operated abroad 1. It expects around 80 percent of new company-owned restaurants to have a Chipotlane 1.

It puts the underlying 2026 tax rate between 24 and 26 percent before discrete items 1.

For 2027 management expects 340 to 360 new company-owned restaurants in the U.S. and Canada and around 15 to 25 company-owned and partner-operated restaurants elsewhere 1. The annual report says more partner-operated restaurants are planned in the Middle East, Mexico and Asia 3.

The company expects to generate positive cash flow, and that cash from operations will cover its needs for the foreseeable future 3. The board has repurchase authorizations, with $1.6 billion remaining on 30 September 2026, and the company says it may change or stop them 1. The board also said it will keep evaluating independent director candidates 9.