Chipotle Profit Falls Short of Estimates

Chipotle Mexican Grill reported lower-than-expected profits for the third quarter on Wednesday. The company earned 27 cents per share on an adjusted basis. Analysts surveyed by LSEG had predicted 29 cents. Revenue stood at $3.29 billion, which met the consensus forecast.

Net income for the period totaled $339.9 million. This figure was down from $382.1 million in the same period last year. Restaurant-level operating margins dropped to 23.3 percent. The previous year's figure was 24.5 percent.

Total net sales increased by 9.6 percent to $3.29 billion. The growth was driven largely by new openings. Chipotle opened 84 company-owned locations and five international licensee restaurants during the quarter. Sales at restaurants open for at least 13 months rose by 2.1 percent. This marked the third consecutive quarter of same-store sales growth. Average checks increased by 1.3 percent.

The quarter included some operational disruptions. In late July, the company noted sales softening as customers grew wary of raw lettuce due to cyclospora concerns. Chipotle's supply was not linked to an outbreak. In August, the chain temporarily removed jalapenos from Minnesota locations after learning its supply was potentially linked to a salmonella outbreak.

The company reiterated its full-year forecast for low single-digit same-store sales growth. For 2027, Chipotle plans to open between 340 and 360 new company-owned restaurants in the U.S. and Canada. It also expects to add roughly 15 to 25 international locations.