Chipotle Mexican Grill Inc, the well-known fast-casual restaurant chain, released its financial performance for the fourth quarter, reporting results that exceeded analyst expectations. The company generated $2.98 billion in revenue during this period, surpassing the forecasted $2.96 billion. Adjusted earnings per share stood at 25 cents, also beating the consensus estimate of 24 cents per share according to the data compiled by Benzinga Pro.
Comparing the current quarter to the previous year, Chipotle's total revenue increased by 4.9%. However, the comparable restaurant sales metric, which reflects a year-over-year comparison of sales from stores open at least a year, experienced a decline of 2.5%. This downturn was primarily attributable to a 3.2% reduction in customer transactions, which was partly offset by a modest 0.7% rise in average spend per customer.
The growth in overall revenue can be linked to several factors. Foremost among them was the introduction of 132 newly opened restaurants during the quarter. Notably, 97 out of these 132 establishments featured a "Chipotlane," the chain's innovative drive-thru format designed to facilitate digital order pickup. Furthermore, the company recorded a significant increase in gift card breakage revenue, amounting to $27 million, which represents an uplift of $19.1 million compared with the prior year period.
Within Chipotle's overall food and beverage revenue, digital sales constituted a substantial 37.2%, reflecting ongoing consumer adoption of online and app-based ordering channels. On the profitability front, the restaurant-level operating margin reached 23.4% for the quarter, illustrating operational efficiency at individual locations.
CEO Scott Boatwright addressed the company's performance by highlighting the challenging and changing consumer environment in which these achievements were realized. He noted, "Against a dynamic consumer backdrop, we opened a record number of restaurants globally and grew Q4 and full year revenue. This momentum will fuel our next phase of growth, driven by our 'Recipe for Growth' strategy, which leans into what uniquely differentiates our brand to accelerate transactions and expand our footprint globally."
From a capital deployment perspective, Chipotle executed share repurchases amounting to $741.6 million during the quarter. As of December 31, 2025, the company retained $1.7 billion authorized and available for buybacks.
Looking ahead, Chipotle announced guidance that foresees comparable restaurant sales remaining "about flat" for the year 2026. This cautious forecast recognizes current market conditions and strategic priorities. The company also signaled plans to open between 350 and 370 new restaurants next year, with approximately 80% of these new sites expected to incorporate the Chipotlane drive-thru concept.
Investors and analysts were invited to discuss these results and the company’s outlook further in a scheduled earnings call at 4:30 p.m. Eastern Time.
Following the announcement, Chipotle’s shares experienced downward movement in after-hours trading, falling 3.75% to $37.70 at the time of reporting. This reaction reflects market assessments of the results and the forward-looking guidance provided.
In summary, while Chipotle outperformed expectations on several key financial metrics in the fourth quarter, including revenue and earnings per share, the declining customer transactions and anticipated flat comparable sales in 2026 point to uncertainties that the company will need to navigate. Nonetheless, the strategic focus on restaurant growth—especially with the Chipotlane model—and significant digital sales penetration provide avenues for sustained operational performance and competitive positioning.
Comparing the current quarter to the previous year, Chipotle's total revenue increased by 4.9%. However, the comparable restaurant sales metric, which reflects a year-over-year comparison of sales from stores open at least a year, experienced a decline of 2.5%. This downturn was primarily attributable to a 3.2% reduction in customer transactions, which was partly offset by a modest 0.7% rise in average spend per customer.
The growth in overall revenue can be linked to several factors. Foremost among them was the introduction of 132 newly opened restaurants during the quarter. Notably, 97 out of these 132 establishments featured a "Chipotlane," the chain's innovative drive-thru format designed to facilitate digital order pickup. Furthermore, the company recorded a significant increase in gift card breakage revenue, amounting to $27 million, which represents an uplift of $19.1 million compared with the prior year period.
Within Chipotle's overall food and beverage revenue, digital sales constituted a substantial 37.2%, reflecting ongoing consumer adoption of online and app-based ordering channels. On the profitability front, the restaurant-level operating margin reached 23.4% for the quarter, illustrating operational efficiency at individual locations.
CEO Scott Boatwright addressed the company's performance by highlighting the challenging and changing consumer environment in which these achievements were realized. He noted, "Against a dynamic consumer backdrop, we opened a record number of restaurants globally and grew Q4 and full year revenue. This momentum will fuel our next phase of growth, driven by our 'Recipe for Growth' strategy, which leans into what uniquely differentiates our brand to accelerate transactions and expand our footprint globally."
From a capital deployment perspective, Chipotle executed share repurchases amounting to $741.6 million during the quarter. As of December 31, 2025, the company retained $1.7 billion authorized and available for buybacks.
Looking ahead, Chipotle announced guidance that foresees comparable restaurant sales remaining "about flat" for the year 2026. This cautious forecast recognizes current market conditions and strategic priorities. The company also signaled plans to open between 350 and 370 new restaurants next year, with approximately 80% of these new sites expected to incorporate the Chipotlane drive-thru concept.
Investors and analysts were invited to discuss these results and the company’s outlook further in a scheduled earnings call at 4:30 p.m. Eastern Time.
Following the announcement, Chipotle’s shares experienced downward movement in after-hours trading, falling 3.75% to $37.70 at the time of reporting. This reaction reflects market assessments of the results and the forward-looking guidance provided.
In summary, while Chipotle outperformed expectations on several key financial metrics in the fourth quarter, including revenue and earnings per share, the declining customer transactions and anticipated flat comparable sales in 2026 point to uncertainties that the company will need to navigate. Nonetheless, the strategic focus on restaurant growth—especially with the Chipotlane model—and significant digital sales penetration provide avenues for sustained operational performance and competitive positioning.