Chipotle Tops Q4 Earnings Estimates, Expects 2026 Comparable Sales To Be 'About Flat'

Core Viewpoint - Chipotle Mexican Grill Inc reported strong financial results for the fourth quarter, exceeding analyst expectations in both revenue and earnings per share, despite a decline in comparable restaurant sales [2][4]. Financial Performance - Revenue for the fourth quarter was $2.98 billion, surpassing analyst estimates of $2.96 billion [2]. - Adjusted earnings were 25 cents per share, beating estimates of 24 cents per share [2]. - Total revenue increased by 4.9% year-over-year, while comparable restaurant sales decreased by 2.5% year-over-year due to a 3.2% drop in transactions, partially offset by a 0.7% increase in average check [2]. Growth Drivers - Revenue growth was attributed to the opening of 132 new restaurants in the quarter, with 97 locations featuring a Chipotlane, and an increase in gift card breakage revenue of $27 million, up from $7.9 million year-over-year [3][4]. - Digital sales accounted for 37.2% of food and beverage revenue, and the restaurant-level operating margin was 23.4% in the fourth quarter [3]. Future Outlook - The company anticipates flat comparable restaurant sales for the full year 2026 and plans to open between 350 and 370 new restaurants, with approximately 80% including a Chipotlane [5]. - Chipotle's CEO emphasized the company's growth momentum and the "Recipe for Growth" strategy aimed at differentiating the brand and expanding its global footprint [4]. Stock Performance - Following the earnings report, Chipotle shares fell by 3.75% in after-hours trading, reaching $37.70 [6].