Market Flux Event
Chipotle Q3 Earnings Miss on EPS as Cyclospora Food-Scare Fears Drag on Sales
Read this in the Market Flux appChipotle Mexican Grill reported third-quarter adjusted earnings per share of 27 cents, falling two cents short of the 29-cent Wall Street consensus, as food-safety fears tied to cyclospora weighed on customer traffic and same-store sales during the summer. Revenue of $3.29 billion came in slightly ahead of the $3.285 billion estimate, while net income dropped to $339.9 million from $382.1 million in the same quarter a year earlier. Operating margin for the quarter was 13.7%.
The earnings miss reflects the lingering consumer hesitancy that followed food-scare concerns, even as Chipotle appeared to be recovering from the broader traffic weakness it experienced through 2025. The company's stock has fallen roughly 22% year to date, pulling its market cap to around $36 billion.
Looking ahead, Chipotle guided for 340 to 360 new company-owned restaurant openings in the United States and Canada in 2027, signaling continued confidence in its long-term expansion despite near-term profitability pressure.
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Sources
- CNBCChipotle earnings miss estimates, but same-store sales increase for third straight quarter
- FaststocknewssCHIPOTLE $CMG Q3 ADJUSTED EPS MISSES AT $0.27, REVENUE BEATS • Adj EPS: $0.27 vs $0.29 est, miss • Revenue: $3.293B vs $3.285B est, beat • Operating margin: 13.7% • EPS: $0.27 Chipotle sees 340 to 360 new company-owned restaurant openings in the US and Canada in 2027.
- WallstengineCHIPOTLE $CMG Q3’26 EARNINGS HIGHLIGHTS 🔹 Revenue: $3.3B (Est. $3.28B) 🟢; +9.6% YoY 🔹 Adj. EPS: $0.27 (Est. $0.29) 🔴; -6.9% YoY 🔹 Comparable Sales: 2.1% 🔹 Restaurant-Level Margin: 23.3%; -120 bps YoY FY26 Guide: 🔹 Comparable Sales: Low-single-digit range 🔹 New Restaurants: 350-370 🔹 Chipotlanes: Around 80% of new company-owned restaurants 🔹 Effective Tax Rate: 24%-26% before discrete items FY27 Guide: 🔹 U.S. & Canada Restaurants: 340-360 🔹 Outside U.S. & Canada: Around 15-25 Announcements: 🔹 New Restaurants: 84 company-owned; 53 with a Chipotlane; five partner-operated 🔹 New Markets Entered: three new markets Other Q3 Metrics: 🔹 Digital Sales: 38.8%; +210 bps YoY 🔹 Transactions: +0.8% 🔹 Operating Margin: 13.7%; -220 bps YoY Comments: 🔸 “We're gaining traction with menu and digital innovation, making significant progress on our high-efficiency equipment rollout, and accelerating our global expansion with entry into three new markets this quarter.”
- Seeking AlphaChipotle Mexican Grill Non-GAAP EPS of $0.27 misses by $0.02, revenue of $3.29B in-line
- FINANCIERNEWS🍔 Chipotle EPS Misses at 27 Cents as Food-Scare Fears Hit Sales Chipotle posted adjusted EPS of 27 cents against 29 cents expected, with revenue of $3.29 billion matching estimates. Net income fell to $339.9 million from $382.1 million a year earlier. CMG
- ReutersChipotle beats quarterly sales expectations on resilient demand
- BenzingaChipotle Shares Step Higher on Mixed Q3 Earnings Print
- WsjChipotle Logs Higher Revenue as Same-Restaurant Sales Climb