Chipotle’s Q4 Earnings Beat Fails to Impress as Same-Store Sales Decline
Chipotle Mexican Grill delivered a mixed fourth-quarter performance, beating earnings estimates but disappointing investors with weak same-store sales and cautious guidance. The burrito chain posted adjusted earnings of $0.25 per share on $2.98 billion revenue, narrowly surpassing analyst expectations. Yet shares tumbled 7% in after-hours trading as the market digested news of a 2.5% year-over-year decline in comparable sales.
The company's growth came entirely from physical expansion, with 132 new locations opening in Q4 alone. Management anticipates flat comparable sales for 2026, planning modest 1-2% menu price increases that won't fully offset rising labor and food costs. Despite these headwinds—including pullback from lower-income customers—Chipotle remains committed to aggressive expansion with 350-370 new restaurants planned for 2026.
