Chipotle Mexican Grill, Inc. (CMG)

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Financial statements

data from SEC XBRL filings. Values are as-reported; restatements supersede originals.

From 10-Q filed 2026-04-30 (period ending 2026-03-31).

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this report are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements about the number of new restaurants we expect to open in 2026, and the number with Chipotlanes, the number of new international partner-operated restaurants we expect to open, our anticipated comparable restaurant sales for 2026, the expected impact of tariffs on our food, beverage and packaging costs during the 2026 second quarter and on an ongoing basis, our expectation to generate positive cash flow for the foreseeable future, our expectations for utilization of cash flow from operations, our ability to manage prices, risks and volatility in our supply chain, our plans for continuing stock buybacks and the volume of buybacks, and the period of time during which our cash and short-term investment will fund our operations. We use words such as “anticipate”, “believe”, “could”, “should”, “may”, “approximately”, “estimate”, “expect”, “intend”, “project”, “target”, "goal" and similar terms and phrases, including references to assumptions, to identify forward-looking statements. The forward-looking statements in this report are based on currently available operating, financial and competitive information available to us as of the date of this filing and we assume no obligation to update these forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in the statements, including but not limited to: wage inflation and state or local regulations mandating higher minimum wages; the competitive labor market, which impacts our ability to attract and retain qualified employees; the impact of any union organizing efforts and our responses to such efforts; increases in ingredient and other operating costs due to inflation, global conflicts, severe weather, our Food with Integrity philosophy, tariffs or trade restrictions; intermittent supply shortages relating to our Food with Integrity philosophy, rapid expansion and supply chain disruptions; risks of food safety incidents and food-borne illnesses; our reliance on certain information technology systems and potential material failures, interruptions or outages; risks that our investments in new technology and technological innovations may not generate returns; privacy and cyber security risks, including breaches, unauthorized access, theft, modification, destruction or ransom of guest or employee personal or confidential information stored on our network or the network of third party providers; the impact of competition, including from sources outside the restaurant industry; the impact of government regulations relating to our employees, employment practices, restaurant design and construction, and the sale of food or alcoholic beverages; our ability to achieve our planned growth, such as the costs and availability of suitable new restaurant sites, construction materials and contractors and restaurant equipment; the expected costs and risks related to our international expansion, including through partner-operated restaurants in the Middle East, Asia and Mexico; our ability to achieve expected levels of comparable restaurant sales due to factors such as changes in guests' perceptions of our brand, including as a result of negative publicity or social media posts and decreased consumer spending, or the inability to increase menu prices or realize the benefits of menu price increases; failure to meet market expectations for our financial performance or any announced guidance and the impact thereof; the potential impact of activist shareholder actions or tactics; failure to attract or retain key executive talent; the impact of our brand, marketing, promotional, advertising and pricing strategies, digital platform and menu innovations; our reliance on third party delivery services and the IT infrastructure; litigation risks, including possible governmental actions and potential class action litigation related to food safety incidents, cybersecurity incidents, employment or privacy laws, advertising claims, contract disputes or other matters. In addition, many of the foregoing risks and uncertainties are, or could be, exacerbated by any worsening of the global business and macroeconomic environment. These statements also are subject to other risk factors described from time to time in our SEC reports, including our annual report on Form 10-K and quarterly reports on Form 10-Q, all of which are available on the investor relations page of our website at ir.Chipotle.com.

As of March 31, 2026, we owned 3,983 Chipotle restaurants throughout the United States and 107 international Chipotle restaurants. Additionally, we had 14 international partner-operated restaurants. We manage our U.S. operations based on 12 regions and aggregate our operations to one reportable segment.

Throughout “Management’s Discussion and Analysis of Financial Condition and Results of Operations” we discuss the following key operating metrics which we believe will drive our financial results and long-term growth model. We believe these metrics are useful to investors because management uses these metrics to assess the growth of our business and the effectiveness of our marketing and operational strategies:

•Comparable restaurant sales

•Food, beverage, and packaging as a percentage of total revenue

•Labor as a percentage of total revenue

•Occupancy as a percentage of total revenue

•Other operating costs as a percentage of total revenue

•New restaurant openings

First Quarter 2026 Financial Highlights, year-over-year:

•Total revenue increased 7.4% to $3.1 billion

•Comparable restaurant sales increased 0.5%

•Diluted earnings per share was $0.23, a 17.9% decrease from $0.28

Sales Trends. Comparable restaurant sales increased 0.5% for the three months ended March 31, 2026. The increase is attributable to an increase in transactions of 0.6%, partially offset by a 0.1% decrease in average check. Comparable restaurant sales represent the change in period-over-period total revenue for company-owned restaurants in operation for at least 13 full calendar months. Digital sales represented 38.6% of total food and beverage revenue. For full-year 2026, management is anticipating comparable restaurant sales to be about flat.

Restaurant Development. During the three months ended March 31, 2026, we opened 49 company-owned restaurants, which included 42 restaurants with a Chipotlane. We expect to open approximately 350 to 370 restaurants in 2026, which includes 10 to 15 international partner-operated restaurants. We expect around 80% of our new company-owned restaurants will include a Chipotlane.

Restaurant Activity

The following table details company-owned restaurant unit data for the periods indicated.

	Three months ended March 31,
	2026	2025
Beginning of period	4,042	3,726
Openings	49	57
Permanent closures	(1)	(2)
Total at end of period	4,090	3,781

The following table details partner-operated restaurant unit data for the periods indicated.

	Three months ended March 31,
	2026	2025
Beginning of period	14	3
Openings	-	2
Total at end of period	14	5

Results of Operations

Our results of operations as a percentage of total revenue and period-over-period change are discussed in the following section.

Revenue

	Three months ended March 31,						Percentage
	2026			2025			change
	(dollars in millions)
Food and beverage revenue	$	3,072.7		$	2,859.8		7.4	%
Delivery service revenue	15.5			15.4			0.6	%
Total revenue	$	3,088.2		$	2,875.3		7.4	%
Average restaurant sales (1)	$	3.094		$	3.186		(2.9	%)
Comparable restaurant sales increase/(decrease)	0.5%			(0.4%)
Transactions	0.6%			(2.3%)
Average check	(0.1%)			1.9%
Menu price increase	0.9%			2.9%
Check mix	(1.0		%)	(1.0		%)

(1)Average restaurant sales refers to the average trailing 12-month food and beverage revenue for company-owned restaurants in operation for at least 12 full calendar months.

The following is a summary of the change in restaurant sales for the period indicated:

	Three months ended
	(dollars in millions)
For the period ended March 31, 2025	$	2,875.3
Change from:
Comparable restaurant sales	14.0
Restaurants not yet in comparable base opened in 2026	14.1
Restaurants not yet in comparable base opened in 2025	192.0
Closures	(9.1)
Other	1.9
For the period ended March 31, 2026	$	3,088.2

Food, Beverage and Packaging Costs

	Three months ended March 31,						Percentage
	2026			2025			change
	(dollars in millions)
Food, beverage and packaging	$	913.3		$	838.4		8.9	%
As a percentage of total revenue	29.6		%	29.2		%	0.4	%

Food, beverage and packaging costs increased 0.4% as a percentage of total revenue for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was driven by 0.9% of inflation, primarily from beef and freight, and 0.4% of higher produce usage. These increases were partially offset by 0.7% of lower dairy and avocado costs and, to a lesser extent, a 0.3% benefit from menu price increases.

Labor Costs

	Three months ended March 31,						Percentage
	2026			2025			change
	(dollars in millions)
Labor costs	$	805.4		$	718.2		12.1	%
As a percentage of total revenue	26.1		%	25.0		%	1.1	%

Labor costs increased 1.1% as a percentage of total revenue for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was primarily driven by a 0.4% impact from costs related to certain legal proceedings, 0.3% from wage inflation, 0.3% from lower average restaurant sales volumes, and 0.2% from higher benefits expense, including performance-based bonuses. These increases were partially offset by a 0.2% benefit from menu price increases.

Occupancy Costs

	Three months ended March 31,						Percentage
	2026			2025			change
	(dollars in millions)
Occupancy costs	$	169.9		$	149.8		13.4	%
As a percentage of total revenue	5.5		%	5.2		%	0.3	%

Occupancy costs increased 0.3% as a percentage of total revenue for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was due to 0.2% of expense associated with new restaurants and 0.1% of expense from existing restaurants.

Other Operating Costs

	Three months ended March 31,						Percentage
	2026			2025			change
	(dollars in millions)
Other operating costs	$	480.6		$	415.2		15.8	%
As a percentage of total revenue	15.6		%	14.4		%	1.2	%

Other operating costs increased 1.2% as a percentage of total revenue for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was due to the impact from several items, primarily 0.4% increase in marketing and promotional activities, 0.2% increase in utilities, and 0.2% higher delivery expense associated with increased delivery sales. This increase was partially offset by a 0.1% benefit from menu price increases.

General and Administrative Expenses

	Three months ended March 31,						Percentage
	2026			2025			change
	(dollars in millions)
General and administrative expenses	$	203.7		$	172.8		17.9	%
As a percentage of total revenue	6.6		%	6.0		%	0.6	%

The following is a summary of the change in general and administrative expenses for the period indicated:

	Three months ended
	(dollars in millions)
For the period ended March 31, 2025	$	172.8
Change from:
Conferences, primarily biennial All Managers’ Conference	23.3
Performance bonuses	5.9
Wages	5.1
Restructuring	2.9
Stock-based compensation, August 2024 retention awards	(8.9)
Other	2.6
For the period ended March 31, 2026	$	203.7

Depreciation and Amortization

	Three months ended March 31,						Percentage
	2026			2025			change
	(dollars in millions)
Depreciation and amortization	$	96.7		$	87.2		10.9	%
As a percentage of total revenue	3.1		%	3.0		%	0.1	%

Depreciation and amortization increased 0.1% as a percentage of total revenue for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. Increased depreciation expense was primarily due to new restaurant openings. This was partially offset by the benefit of menu price increases.

Interest and Other Income, Net

	Three months ended March 31,						Percentage
	2026			2025			change
	(dollars in millions)
Interest and other income, net	$	8.7		$	22.3		(60.7	%)
As a percentage of total revenue	0.3		%	0.8		%	(0.5	%)

Interest and other income, net decreased in dollar terms for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily due to lower balances of interest bearing securities. The decrease in interest bearing securities is associated with increased repurchases of our common stock.

Provision for Income Taxes

	Three months ended March 31,						Percentage
	2026			2025			change
	(dollars in millions)
Provision for income taxes	$	103.0		$	114.9		(10.4	%)
Effective income tax rate	25.4		%	22.9		%	2.5	%

The effective income tax rate increased 2.5% for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was primarily driven by a 1.7% reduction in tax benefits related to option exercises and equity vesting, a 0.4% reduction in tax credits, and a 0.4% increase in other discrete income tax items.

Seasonality

Seasonal factors cause our profitability to fluctuate from quarter to quarter. Historically, our average daily restaurant sales and net income are lower in the first and fourth quarters due, in part, to the holiday season and because fewer people eat out during periods of inclement weather (the winter months) than during periods of mild or warm weather (the spring, summer and fall months). Other factors also have a seasonal effect on our results. For example, restaurants located near colleges and universities generally do more business during the academic year. Seasonal factors, however, might be moderated or outweighed by other factors that may influence our quarterly results, such as unexpected publicity impacting our business in a positive or negative way, disease outbreak, epidemic or endemic, the impact of inflation and consumer sentiment on consumer spending, fluctuations in food or packaging costs, the timing of holidays, or the timing of menu price increases or promotional activities and other marketing initiatives. The number of trading days in a quarter can also affect our results, although, on an overall annual basis, changes in trading days do not have a significant impact.

Our quarterly results are also affected by other factors such as the amount and timing of non-cash stock-based compensation expense and related tax rate impacts, litigation, settlement costs and related legal expenses, impairment charges and non-operating costs, timing of marketing or promotional expenses, the number and timing of new restaurants opened in a quarter, and closure of restaurants. New restaurants typically have higher operating costs following opening because of the expenses associated with their opening and operating inefficiencies in the months immediately following opening. Accordingly, results for a particular quarter are not necessarily indicative of results to be expected for any other quarter or for any year.

Liquidity and Capital Resources

Cash and Investments

As of March 31, 2026, we had a cash and marketable investments balance of $864.4 million, non-marketable investments of $103.4 million, and $35.7 million of restricted cash. After funding the current operations in our restaurants and support centers, the first planned use of our cash flow from operations is to provide capital for the continued investment in new restaurant construction. In addition to continuing to invest in our restaurant expansion, we expect to utilize cash flow from operations to: invest in, maintain, and refurbish our existing restaurants; repurchase additional shares of our common stock subject to market conditions; and for general corporate purposes. As of March 31, 2026, $1.0 billion remained available for repurchases of shares of our common stock. Under the remaining repurchase authorizations, shares may be purchased from time to time in open market transactions, subject to market conditions.

Borrowing Capacity

As of March 31, 2026, we had $500.0 million of undrawn borrowing capacity under a revolving credit facility.

Use of Cash

We believe that cash from operations, together with our cash and investment balances, will be sufficient to meet ongoing capital expenditures, working capital requirements and other cash needs for the foreseeable future. Assuming no significant declines in comparable restaurant sales, we expect we will generate positive cash flow for the foreseeable future.

We have not required significant working capital because guests generally pay using cash or credit and debit cards and because our operations do not require significant receivables or significant inventories, partly due to our use of various fresh ingredients. In addition, we generally have the right to pay for the purchase of food, beverages and supplies sometime after the receipt of those items, generally within ten days, thereby reducing the need for incremental working capital to support our growth.

Cash Flows

Cash provided by operating activities was $651.4 million for the three months ended March 31, 2026, compared to $557.1 million for the three months ended March 31, 2025. The increase was primarily due to timing of tax-related payments, including the receipt of a $64.9 million federal tax refund related to the 2018 tax year. This activity was partially offset by other changes in non-tax operating assets and liabilities.

Cash used in investing activities was $8.1 million for the three months ended March 31, 2026, compared to cash provided by investing activities of $6.1 million for the three months ended March 31, 2025. The change was primarily due to increased capital expenditures of $35.5 million, mainly related to costs associated with new restaurant development and the purchase of new equipment for existing restaurants. This was partially offset by a $17.6 million increase in maturities of investments.

Cash used in financing activities was $747.5 million for the three months ended March 31, 2026, compared to $585.2 million for the three months ended March 31, 2025. The change was primarily due to increased repurchases of common stock of $147.2 million.

Critical Accounting Estimates

Critical accounting estimates are those that we believe are both significant and that require us to make difficult, subjective or complex judgments, often because we need to estimate the effect of inherently uncertain matters. We base our estimates and judgments on historical experiences and various other factors that we believe to be appropriate under the circumstances. Actual results may differ from these estimates, and we might obtain different estimates if we used different assumptions or factors. We had no significant changes to our critical accounting estimates as described in our Annual Report on Form 10-K for the year ended December 31, 2025.

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holders ( registered funds via N-PORT, institutional investors via 13F). Showing top by dollar value.

Holder	Type	ETF	MF	Position ($)	% of holder	Δ % of holder	Holder AUM

Next expected filings

~2026-07-24 10-Q expected by 2026-08-06 (in 84 days)
~2026-10-30 10-Q expected by 2026-11-12 (in 182 days)
~2027-02-04 10-K expected by 2027-02-26 (in 279 days)
~2027-04-30 10-Q expected by 2027-05-13 (in 364 days)

Predicted from historical filing cadence; not an SEC commitment.

Recent SEC filings

2026-04-30 10-Q Quarterly Report
2026-04-29 8-K Earnings Release; Financial Statements and Exhibits
2026-04-28 DEF 14A Proxy Statement
2026-02-04 10-K Annual Report
2026-02-03 8-K Earnings Release; Financial Statements and Exhibits
2026-01-12 8-K Officer/Director Change; Regulation FD Disclosure; Financial Statements and Exhibits
2025-11-25 8-K Officer/Director Change; Financial Statements and Exhibits
2025-10-30 10-Q Quarterly Report
2025-10-29 8-K Earnings Release; Financial Statements and Exhibits
2025-09-05 8-K Officer/Director Change
2025-08-26 8-K Officer/Director Change
2025-07-24 10-Q Quarterly Report
2025-07-23 8-K Earnings Release; Other Events; Financial Statements and Exhibits
2025-06-27 8-K Material Agreement Entered; Material Agreement Terminated; Material Financial Obligation; Financial Statements and Exhibits
2025-05-07 8-K Officer/Director Change; Regulation FD Disclosure; Financial Statements and Exhibits

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