A Chipotle logo is displayed on a sign outside of a restaurant on January 9, 2026 in San Diego, California.
Kevin Carter | Getty Images
Chipotle Mexican Grill On Wednesday, reported surprising growth in same-store sales, signaling that the burrito chain could begin to put last year’s woes behind it.
Shares of the restaurant company were up about 3% in extended trading.
Here’s what the company reported compared to what Wall Street expected, based on a survey of analysts by LSEG:
- Earnings per share: 24 cents adjusted, in line with expectations
- Income: $3.09 billion versus $3.07 billion expected
Chipotle reported first-quarter net income of $302.8 million, or 23 cents per share, compared with $386.6 million, or 28 cents per share, a year earlier. Higher effective tax rates, wage inflation and rising beef prices weighed on its margins in the quarter.
Excluding legal fees, restructuring costs and other items, the company earned 24 cents per share.
Net sales rose 7.4% to $3.09 billion, boosted by new store openings.
The company’s same-store sales rose 0.5%, reversing fourth-quarter declines. Wall Street expected its same-store sales to decline 0.7%, based on StreetAccount estimates.
CEO Scott Boatwright said in a statement that the results exceeded Chipotle’s expectations for the quarter. And same-store sales momentum continued in the second quarter, he said during the company’s earnings conference call.
To attract diners, Chipotle balanced new menu items — like its cilantro-lime sauce — with bringing back favorites for a limited time, like Chicken Al Pastor. Combined with its loyalty program, the menu innovation has helped re-attract younger consumers, a cohort that stopped buying Chipotle as often last year and instead packed lunch.
Traffic to Chipotle restaurants increased 0.6%. Over the last year, the chain saw transactions drop 2.3%, an early sign that diners weren’t coming as frequently.
While many restaurant chains saw traffic and sales decline in 2024, Chipotle initially bucked the trend. But the last year has been tough for the fast-food chain and other restaurants with similar prices. Customers, concerned about the economy as a whole and their disposable income, weren’t visiting his restaurants as often to save money.
Chipotle has coped with the economic downturn by trying to improve restaurant operations and adding new menu items. On Monday, the company announced that Restaurant Brands International alumnus Fernando Machado would be its new chief brand officer.
For the full year, the company reiterated its previous forecast of flat same-store sales. Chief Financial Officer Adam Rymer said the outlook was “conservative,” citing unpredictable consumer trends.
The economy has become even more volatile since Chipotle’s last earnings report; The war between the United States and Iran has led to higher fuel prices, and few companies have chosen to raise their full-year outlook in recent weeks. Chipotle executives said sales slowed in March, after the dispute began.
The war in the Middle East also means Chipotle may open fewer restaurants this year than expected, according to Boatwright. The company has entered into a development agreement with the Alshaya Group to operate sites in the region as part of its wider international expansion strategy.