Chipotle Earnings Slip as Operating Margins Tighten

The company reported adjusted earnings of 27 cents per share against analyst forecasts of 29 cents, though revenue matched expectations at $3.29 billion. This 9.6% year-over-year revenue increase was driven largely by aggressive expansion, with 84 new company-owned locations and five international sites added during the quarter. Despite the growth in footprint, the bottom line suffered from a decline in restaurant-level margins, which dropped from 24.5% to 23.3%.

Management navigated a difficult summer marked by consumer anxiety surrounding food safety. Although the company’s own supply chains were not implicated in a widespread cyclospora outbreak, sales dipped in late July as customers grew wary of raw greens. A separate incident in August forced a temporary removal of jalapenos in Minnesota following potential links to a salmonella scare. Despite these headwinds, same-store sales rose 2.1%, buoyed by a 1.3% increase in average check size. Looking toward 2027, the company remains committed to rapid scaling, targeting between 340 and 360 new North American locations.