Chipotle Q3 profit drops to 27 cents a share

Chipotle Mexican Grill earned 27 cents per share in the third quarter, a figure below the 29 cents analysts had forecast.

The company reported net income of $339.9 million for the period. That amount was lower than the $382.1 million, or 29 cents per share, the chain posted in the same quarter last year. Revenue held steady at $3.29 billion, matching market expectations.

Operating margins at the restaurant level declined from 24.5% a year ago to 23.3%. The drop reflects higher costs and operational disruptions during the quarter.

Sales issues began in late July when customers expressed hesitation about raw lettuce following cyclospora outbreaks, even though Chipotle’s supply chain was not directly involved. In August, the company temporarily pulled jalapenos from its Minnesota locations after a potential link to a salmonella outbreak was identified.

Despite these interruptions, total net sales increased 9.6% to $3.29 billion. The growth was fueled by 84 new company-owned stores and five international locations that opened during the period.

Sales at existing restaurants rose 2.1% for the third consecutive quarter. An average check increase of 1.3% contributed to that gain. Chipotle maintains its full-year forecast for low single-digit same-store sales growth and plans to open 340 to 360 new U.S. and Canadian locations in 2027.