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Chipotle Reports Q4 Comps Decline and Flat 2026 Outlook as Shares Drop

The shares slid after management guided to flat 2026 comparable sales, citing margin pressure from rising food and labor costs.

Overview

  • Fourth‑quarter comparable sales fell 2.5% with transactions down 3.2%, while revenue reached $2.98 billion and adjusted EPS came in at $0.25, slightly topping estimates.
  • Management forecast roughly flat same‑store sales for 2026 and plans menu price increases of about 1% to 2%, which it said will not fully offset inflation.
  • Shares fell as much as 11% after the report and were down roughly 6% premarket as investors reacted to the cautious sales outlook.
  • Chipotle outlined a four‑part traffic plan featuring the return of Chicken al Pastor next week, a high‑protein and snack line, a rewards relaunch, and AI‑driven personalization.
  • The company will keep expanding aggressively with 350 to 370 new restaurants planned for 2026 after opening 132 in Q4, while noting headwinds including record U.S. beef prices and a pullback among lower‑income diners.