Chipotle Q1 Revenue Jumps 7.4% While Margin Contracts to 12.9%
Chipotle’s Q1 revenue rose 7.4% to $3.09B with comparable sales up 0.5%, reversing declines and driven by a 0.6% traffic gain; operating margin shrank to 12.9% from 16.7% and net income fell to $302.8M. The chain opened 49 restaurants, repurchased $700.8M of shares and plans 350-370 openings in 2026.
1. Q1 Financial Results
Chipotle reported first-quarter revenue of $3.09 billion, up 7.4% year-over-year, with comparable restaurant sales rising 0.5% and transaction volume up 0.6%. Net income declined to $302.8 million, or $0.23 per share, from $386.6 million a year earlier.
2. Cost Pressures and Margins
Operating margin contracted to 12.9% from 16.7% as beef, freight and labor costs increased. Food and beverage costs rose to 29.6% of revenue and labor expenses climbed to 26.1%, squeezing profitability despite higher sales.
3. Store Expansion
The company opened 49 new restaurants during Q1, including 42 Chipotlane drive-throughs, bringing the total to 4,090 locations. Digital sales represented 38.6% of food and beverage revenue, reflecting ongoing investment in off-premise channels.
4. Capital Allocation and Outlook
Chipotle repurchased $700.8 million of its stock at an average price of $36.14 per share, with $1.0 billion remaining under its program. Management reiterated plans to open 350-370 restaurants in 2026 and maintain roughly flat full-year comparable sales.