Chipotle Mexican Grill, Inc.

What they do

Chipotle owns and operates Chipotle Mexican Grill restaurants featuring burritos, burrito bowls, quesadillas, tacos, and salads. As of June 30, 2026, it owned 4,074 U.S. restaurants and 112 international restaurants, plus 15 international partner-operated restaurants. Revenue is derived entirely from sales at its restaurants; operations are aggregated into one reportable segment.

Revenue drivers

• U.S. company-owned restaurants — Accounts for the vast majority of revenue, with 4,074 U.S. locations as of June 30, 2026; revenue comes from in-restaurant and digital sales of burritos, bowls, quesadillas, tacos, and salads.
• Digital sales — Represented 38.3% of total food and beverage revenue in Q2 2026, up from 35.5% in Q2 2025, driven through the Chipotle app, website, and third-party delivery platforms.
• International restaurants — 112 company-owned international Chipotle restaurants and 15 partner-operated international restaurants as of June 30, 2026; partner-operated locations are run by third parties under license or franchise agreements or minority investments Chipotle does not control.
• Chipotlane-equipped new restaurants — Of 100 company-owned restaurants opened in Q2 2026, 80 included a Chipotlane, a drive-thru pickup lane for digital orders; the company states these locations enhance guest access and increase new restaurant sales, margins, and returns.

Recent performance

Second quarter 2026 total revenue increased 9.3% year over year to $3.3 billion, driven by new restaurant openings and a 2.2% increase in comparable restaurant sales. Comparable restaurant sales consisted of a 1.2% increase in average check and a 1.0% increase in transactions. Net income was $403.5 million, or $0.32 per diluted share, down from $436.1 million, or $0.32 per diluted share, in the second quarter of 2025. Restaurant level operating margin decreased to 25.2% from 27.4%, and operating margin decreased to 15.7% from 18.2%. Digital sales rose to 38.3% of total food and beverage revenue from 35.5% a year earlier.

Strategy

Chipotle's Recipe for Growth strategy has five stated areas: protect and strengthen the core through operational and culinary excellence; evolve brand messaging and accelerate menu innovation; modernize the business model with technology including AI and a relaunched Rewards Program; expand globally through company-owned and partner-operated markets; and cultivate top talent. The company opened 100 company-owned restaurants in Q2 2026, 80 with Chipotlanes, plus one international partner-operated restaurant. It repurchased $630.7 million of stock in Q2 2026 at an average price of $32.55 per share. Management states it expects positive cash flow and sufficient cash from operations to meet capital expenditures and working capital needs for the foreseeable future.

Risks

• Food safety and food-borne illness — Food safety incidents have occurred and could recur from improper cooking or maintenance by employees or contaminated ingredients from suppliers, potentially harming the brand, decreasing sales, and increasing costs.
• Ingredient and supply cost inflation — Food, beverage and packaging costs rose to 29.7% of total revenue in Q2 2026 from 28.9% a year earlier, driven by beef and freight inflation and higher protein and produce usage, and certain key ingredients are purchased from a small number of suppliers.
• Labor cost pressure — Labor costs rose to 25.0% of total revenue in Q2 2026 from 24.7% a year earlier due to wage inflation, performance-based bonuses, and additional restaurant labor, with further risk from minimum wage regulations and union organizing efforts.
• International expansion execution — Chipotle expects costs and risks related to international expansion, including through partner-operated restaurants in the Middle East, Asia, and Mexico, where it does not directly manage day-to-day operations.

Outlook

Management raised full year comparable sales guidance on strong Q2 momentum, with Scott Boatwright citing menu innovation, Chipotle Rewards engagement, elevated hospitality, and expanded group occasions as growth drivers. The company expects to open new restaurants in 2026, a number of which will include Chipotlanes, and to open new international partner-operated restaurants. Management states it expects to generate positive cash flow for the foreseeable future and to continue stock buybacks, while also citing expected tariff impacts on food, beverage, and packaging costs during the 2026 third quarter and on an ongoing basis.