Chipotle Q2 revenue slightly beats,  mainly on new restaurant openings

Overview

• US fast-casual restaurant's Q2 revenue rose 9.3%, slightly beating analyst expectations

• Adjusted EPS for Q2 beat analyst expectations

• Comparable restaurant sales grew 2.2%, driven by higher average check and transactions

Outlook

• Chipotle sees 2026 comparable restaurant sales growth in the low single digit range

• Company expects 350 to 370 new restaurant openings in 2026

• Chipotle estimates 2026 effective tax rate between 24% and 26%

Result Drivers

• NEW RESTAURANT OPENINGS - Co said revenue growth was primarily driven by new restaurant openings

• MENU PRICING AND TRANSACTIONS - Comparable restaurant sales rose 2.2%, with a 1.2% increase in average check and a 1.0% increase in transactions

• HIGHER COSTS - Operating margin declined due to inflation in beef and freight, higher protein and produce usage, and increased labor costs

Company press release: ID:nPnbrnrrpa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 27 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the restaurants bars peer group is "buy"

• Wall Street's median 12-month price target for Chipotle Mexican Grill Inc is $44.00, about 31.3% above its July 28 closing price of $33.51

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 27 three months ago

Reuters Recommended Reads

• July 29 - Wingstop Q2 revenue rises on new franchise openings

• July 29 - Starbucks beats quarterly sales estimates

• July 28 - Cheesecake Factory Q2 results beat estimates as marketing efforts strengthen consumer engagement

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)