Chipotle expects modestly higher sales this year as drive-thru 'Chipotlanes' come to more stores

By Bill Peters

The fast-casual chain says menu-price increases helped results. It also notes rising beef costs and 'higher protein usage' as people try to find ways to pack more protein into their diets.

Chipotle reported third-quarter earnings on Wednesday.

Chipotle Mexican Grill is sticking with its expectations for modest sales growth this year, even as consumers wrestle with fast-casual fatigue and the affordability crunch.

The fast-casual Mexican chain on Wednesday said it expects same-store sales - a much-watched measure of sales at older restaurants - to be up "in the low single-digit range" for 2026, in keeping with the forecast it offered in July.

Chipotle (CMG) said third-quarter revenue increased 9.6% year over year to $3.293 billion. Same-store sales rose 2.1%, while adjusted earnings per share fell 6.9% to 27 cents. The company said menu-price increases helped results. Management, in breaking down costs as a percentage of sales, also noted rising beef costs and "higher protein usage" as more people try to find ways to pack protein into their diets.

Analysts polled by FactSet expected Chipotle to report adjusted earnings per share of 29 cents for the third quarter, on revenue of $3.286 billion and a same-store sales increase of 1.5%.

During the quarter, Chipotle opened 84 restaurants, 53 of which included a drive-thru "Chipotlane." The company said those drive-thru lanes "continue to perform well and are helping enhance guest access and convenience, as well as increase new restaurant sales, margins and returns."

Shares rose 1% after hours on Thursday.

Chipotle's stock is down 21.7% so far this year as the chain grapples with budget-conscious consumers and promo deals from sit-down restaurants. Restaurants have tried to entice customers with value deals after raising prices to cover pandemic-related costs.

The chain has also dealt with concerns over this summer's cyclospora outbreak and tried to lean into protein-heavy offerings and to boost service with new restaurant equipment and new menu items.

Chipotle's results also arrive after Starbucks (SBUX) said it would not acquire Chipotle, following a report from the Financial Times about the coffee chain's interest in such a move. The prospect of a deal perplexed some analysts.

-Bill Peters

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10-28-26 1658ET