Chipotle reported Q1 revenue growth of 7.4% with positive transaction growth, but EPS declined 17% due to investments and lower margins. Management expressed cautious optimism on the 'Recipe for Growth' strategy, citing successful LTOs, loyalty relaunch, and operational improvements. Full-year comp guidance remains ~flat, but Q2 could range from -1% to +1% depending on macro conditions. Q1 revenue: $2.9B (+7.4% y/y), comps +0.5% (transactions +0.6%, check -0.1%), digital sales $1.2B.
Chipotle reported Q1 revenue growth of 7.4% with positive transaction growth, but EPS declined 17% due to investments and lower margins. Management expressed cautious optimism on the 'Recipe for Growth' strategy, citing successful LTOs, loyalty relaunch, and operational improvements. Full-year comp guidance remains ~flat, but Q2 could range from -1% to +1% depending on macro conditions. Q1 revenue: $2.9B (+7.4% y/y), comps +0.5% (transactions +0.6%, check -0.1%), digital sales $1.2B.
The CEO expresses confidence in the 'recipe for growth' strategy, citing early momentum, and states 'I've never been more confident in our strategy and a very long runway ahead as we continue building Chipotle into a global iconic brand.'
Q1 revenue: $2.9B (+7.4% y/y), comps +0.5% (transactions +0.6%, check -0.1%), digital sales $1.2B.
Q1 restaurant margin: 23.7% (adjusted for legal settlements), -40bps y/y due to labor and other costs.
Q1 EPS: $0.24 (-17% y/y), impacted by investments and higher G&A.
The company is leveraging AI in its restaurants via the 'Avocado' AI assistant, which is freeing manager time and has been expanded to assist with operational planning, cook-to-needs guidance, and facilities triage. The AI capabilities are being well-received by teams, including a standing ovation at the all-managers conference.
April comps stepped up to flat to plus 1% range, driven by innovation and rewards relaunch.. The CEO expresses confidence in the 'recipe for growth' strategy, citing early momentum, and states 'I've never been more confident in our strategy and a very long runway ahead as we continue building Chipotle into a global iconic brand.'
The CEO expresses confidence in the 'recipe for growth' strategy, citing early momentum, and states 'I've never been more confident in our strategy and a very long runway ahead as we continue building Chipotle into a global iconic brand.'
“Also, we sustained part of this conflict longer term as many of our new after the limited time offer ends.”
“In markets where it has benefits translate into hundreds of basis points of improvement and comp sales.”
“It is now live in over 100 restaurants, and we anticipate completing the rollout across all locations by the end of the year.”
“Given especially with the conflict in Iran and gas prices... we believe that there's upside from there.”
“We're in a couple of weeks in one of our markets where we're testing a happier hour from 2 to 5 with tacos at $2.50.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Revenue | FY2026 Q2 | $2.97B–$3Binline vs consensus | $2.985B | MAINTAINED |
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