Chipotle Mexican Grill Inc (NYSE:CMG) shares added almost 13% after the company reported second-quarter 2026 results that exceeded Wall Street expectations and provided an upbeat outlook for the full year.
The restaurant chain reported adjusted earnings of $0.33 per share, slightly ahead of analyst estimates of $0.32, while revenue came in at $3.35 billion, compared with expectations of $3.33 billion
Revenue increased 9.3% year over year, supported by new restaurant openings and higher comparable restaurant sales. Comparable restaurant sales rose 2.2% during the quarter, driven by a 1.2% increase in average check and a 1.0% increase in transactions. Digital sales represented 38.3% of food and beverage revenue, up from 35.5% in the same period a year earlier.
The company’s operating margin declined to 15.7% from 18.2% a year ago, reflecting higher costs for beef, freight, labor and other expenses. Food, beverage and packaging costs increased to 29.7% of revenue from 28.9%, while labor costs rose to 25% from 24.7%. Chipotle opened 100 company-owned restaurants during the quarter, including 80 locations featuring its Chipotlane drive-thru pickup lanes, along with one international partner-operated restaurant. “Our positive results reflect the momentum we’re building as our Recipe for Growth strategy continues to take shape,” Chipotle CEO Scott Boatwright said in a statement. “We’re seeing encouraging progress because we’re focused on the right growth drivers, bringing meaningful menu innovation to our guests, deepening engagement through Chipotle Rewards, elevating hospitality in every restaurant, and expanding opportunities to serve more group occasions.” For 2026, management expects comparable restaurant sales growth in the low single-digit range, up from its previous outlook of flat, and plans to open between 350 and 370 new restaurants, including 10 to 15 international partner-operated locations.